BoJ keeps policy settings unchanged with rates kept at -0.10% and YCC unchanged to target 10yr JGBs at 0% via unanimous vote, while it keeps yield band and yield target unchanged

Says:

• Extends fund operation to support financial lending by one year.
• Issued amendment to principal terms and conditions for funds supplying operations against pooled capital.
• Maintains forward guidance on interest rates and guidance that it will continue large-scale JGB buying and make nimble responses for each maturity.
• Uncertainty for Japan's economy is extremely high.
• Will not hesitate to take additional easing measures as necessary.
• Price growth is expected to narrow towards the middle of next fiscal year.
• Inflation expectation is on the rise.
• It takes time but prices will gradually rise towards the inflation target on the back of rises in inflation expectations and wage increases.
• Prices could deviate downwardly as wage hikes won't strengthen as expected.

Outlook Report

Real GDP

• Fiscal 2022 median forecast cut to 1.9% from 2.0%.
• Fiscal 2023 median forecast cut to 1.7% from 1.9%.
• Fiscal 2024 median forecast cut to 1.1% from 1.5%

Core CPI

• Fiscal 2022 median forecast raised to 3.0% from 2.9%.
• Fiscal 2023 median forecast maintained at 1.6%.
• Fiscal 2024 median forecast raised to 1.8% from 1.6%.