BOJ: Inflation expectations heightening gradually
|Following are the key takeaways from the summary of the monetary policy statement published by the Bank of Japan (BOJ) on Friday.
Japan's economy picking up as a trend.
Global markets showing unstable moves in wake of Russia’s invasion in Ukraine.
Exports, output increasing as a trend, though getting affected by supply constraints.
Pick-up in consumption moderating.
Inflation expectations heightening gradually.
Trend inflationary pressure likely to heighten ahead.
There is very high uncertainty on how Ukraine developments affect Japan’s economy, prices via markets, raw material prices, overseas economies.
Will purchase CP, corporate bonds at about the same pace as before pandemic in order for amounts outstanding to gradually return to pre-pandemic levels.
Market reaction
USD/JPY is seen holding gains around 118.75, unimpressed by the BOJ’s policy outcome.
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