After surprising markets with tweak to YCC in Jul, the Bank of Japan (BOJ) returned to its status quo position in its scheduled Monetary Policy Meeting (MPM) on Fri (22 Sep), where it kept the key policy objectives and forward guidance unchanged to achieve the 2% inflation objective.
BoJ leaves policy settings unchanged in September as expected
LATEST BOJ MEASURES TO BATTLE INFLATION
The Bank of Japan (BoJ) Board members shared their views on monetary policy outlook and Yield Curve Control (YCC), per the BoJ Minutes of the September meeting.
It is true inflation is exceeding 2% for prolonged period, but that alone cannot lead us to conclude japan close to stably, sustainably achieving our target.
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September BOJ meeting review
Following the highly-anticipated September policy review meeting, the Bank of Japan (BoJ) board members decided to leave their current monetary policy settings unadjusted, maintaining rates and 10yr JGB yield target at -10bps and 0.00% respectively.
July BOJ meeting review
At the highly-anticipated July policy review meeting, the Bank of Japan (BoJ) board members decided to leave their current monetary policy settings unchanged, maintaining rates and 10yr JGB yield target at -10bps and 0.00% respectively.
June BOJ meeting review
Following the conclusion of the June meeting, the Bank of Japan (BoJ) board members decided to leave their current monetary policy settings unchanged, maintaining rates and 10yr JGB yield target at -10bps and 0.00% respectively.
March BOJ meeting review
At its March monetary policy meeting, the Bank of Japan (BoJ) board members decided to leave their monetary policy settings unchanged, maintaining rates at -10bps and 10yr JGB yield target unchanged at 0.00%.
January BOJ meeting review
At its first monetary policy meeting of this year, the Bank of Japan (BoJ) board members decided to make no changes to their monetary policy settings in December, maintaining rates at -10bps and 10yr JGB yield target unchanged at 0.00%.
What is the BOJ?
The Bank of Japan (BoJ) is the central bank of Japan. It is a juridical person established based on the Bank of Japan Act (hereafter the Act), and is not a government agency or a private corporation.
POLICY BOARD. The Policy Board is established as the Bank's highest decision-making body. The Board determines the guideline for currency and monetary control, sets the basic principles for carrying out the Bank's operations, and oversees the fulfillment of the duties of the Bank's officers, excluding Auditors and Counsellors.
HISTORY. The Bank of Japan was established under the Bank of Japan Act (promulgated in June 1882) and began operating on October 10, 1882, as the nation's central bank. The Bank was reorganized on May 1, 1942 in conformity with the Bank of Japan Act (hereafter the Act of 1942), promulgated in February 1942. The Act of 1942 strongly reflected the wartime situation: for example, Article 1 stated the objectives of the Bank as "the regulation of the currency, control and facilitation of credit and finance, and the maintenance and fostering of the credit system, pursuant to national policy, in order that the general economic activities of the nation might adequately be enhanced." The Act of 1942 was amended several times after World War II. Such amendments included the establishment of the Policy Board as the Bank's highest decision-making body in June 1949. The Act of 1942 was revised completely in June 1997 under the two principles of "independence" and "transparency." The revised act (the Act) came into effect on April 1, 1998.
Who is BOJ's president?
Kazuo Ueda was born in Makinohara, Japan, on September 20 in 1951. He is the 32nd and current Governor of the Bank of Japan (BoJ). He is a professor and the dean of the business department at Kyoritsu Women's University in Tokyo and the external director at JGC Holdings Corp, an engineering company and at the state-owned Development Bank of Japan.
The 71-year-old is widely seen as an expert on monetary policy but is seen as a surprise appointment by analysts. He was not even considered a dark-horse candidate. Ueda wasn’t really on their radar because the BOJ governor job has traditionally been assumed by a long-serving Finance Ministry bureaucrat or central bank official. He is the first academic economist to lead the BOJ in the post-World War II era.
Ueda on his Wikipedia's profile
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the world interest rates table
The World Interest Rates Table reflects the current interest rates of the main countries around the world, set by their respective Central Banks. Rates typically reflect the health of individual economies, as in a perfect scenario, Central Banks tend to rise rates when the economy is growing and therefore instigate inflation.