Central Banks


Bank of Japan monetary policy meeting April 2023

So no change to policy settings above there at all. Not wholly unexpected, Ueda had not given indications he was in a rush.

And:

  • To conduct examination of monetary policy
  • BOJ tweaks forward
    guidance
  • Will take additional
    easing steps without hesitation as needed while striving for market
    stability
  • Removes reference to
    covid-19 pandemic from its forward guidance
  • Removes forward guidance that pledged to keep interest rate at current or lower levels
  • Will spend 1 to
    1-1/2 years to conduct review on monetary policy guidance
  • Japan’s economy fell
    into deflation in late 1990s, achieving price stability has been a
    challenge for long period of 25 years
  • During this period,
    boj has implemented various monetary easing steps
  • These measures have
    interacted with, influenced wide areas of Japan’s economic activity,
    prices and financial sector
  • In light of this,
    BOJ has decided to conduct broad-perspective review of monetary
    policy

There is a lot of info above … but check out that bolded point. Taking 12 to 18 months to conduct its review? That’s a long way from speculation not too many weeks ago that there would be substantial changes at this meeting.

Yen has weakened, although not a huge move.

For background:

Earlier:

And, previews:



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