BoJ maintains policy settings, as expected; maintains forward guidance; maintains yield target and 1.0% reference rate for 10yr JGB; decision on YCC unanimous; will not hesitate to take additional easing measures if necessary

DECISION 

• Maintains rate at -0.1%; decision unanimous.
• Maintains 10yr JGB yield target around 0%.
• Maintains 1.0% reference rate for 10yr JGB.
• YCC decision unanimous

INFLATION

• Y/Y rate of rise in CPI slower than a while ago, mainly due to the effects of pushing down energy prices.
• But CPI has been around 3% recently due to the pass-through of cost increases to consumer prices.
• Inflation expectations have risen moderately.
• The rate of rise in CPI is likely to be above 2% through fiscal 2024.
• Thereafter, the rate of rise is projected to slow down.
• Underlying CPI inflation is likely to increase gradually toward achieving the price stability target.

ECONOMY

• Economy has recovered moderately.
• Private consumption continues to rise moderately.
• Economy likely to continue recovering moderately for the time being.
• Japan's economy is projected to continue growing at a pace above the potential growth rate.
• Must scrutinize FX, market moves, and their impact on economy, prices.

Via BoJ