Bank of Japan
The yen is strengthening – there were two dissents to the hold decision, both wanting a rate rise.
BOJ policy decision
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BoJ keeps rates unchanged by a 7–2 vote.
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Board members Takata and Tamura dissented.
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Takata: Saw a shift away from the deflationary norm and judged the 2% price stability target “more or less achieved.”
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Tamura: Said with inflation risks skewed to the upside, the policy rate should be set closer to neutral.
Economic assessment
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Economy recovering moderately, though some weakness seen.
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Exports and output remain broadly flat.
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Capital expenditure on a moderate upward trend.
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Private consumption remains resilient.
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Inflation expectations have risen moderately.
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Growth likely to slow due to global trade policies but re-accelerate thereafter.
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Underlying inflation to stagnate with slower growth but gradually accelerate later.
Asset disposals
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BoJ to begin selling ETF and J-REIT holdings.
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Decision on ETF/J-REIT sales made by unanimous vote.
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Sales to proceed “in accordance with the fundamental principles of their disposal.”
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Still to come is Bank of Japan Governor Ueda’s news conference:
- due at 0630 GMT / 0230 US Eastern time
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Background to this:
- Bank of Japan meeting begins today, rates expected to kept on hold – Nikkei report
- BOJ to hold key interest rate at 0.50% in September meeting – poll
This article was written by Eamonn Sheridan at investinglive.com.
