The bank also revised its growth and inflation forecasts lower as expected and once again reiterated readiness to do more or adjust policy as needed to achieve its inflation target.
BOJ expects to hit 2% CPI target by around second half of FY 2016, pushing back timeline from previous estimates
FY2015 GDP now seen at 1.2% vs 1.7% prior, FY2016 1.4% vs 1.5% prior, FY2017 0.3% vs 0.2% prior
Downgrades FY2016 core CPI estimate to 1.4% from 1.9% prior
Growth and inflation risks skewed to the downside, but the price growth trend steadily improving. Potential growth rate around 0.5% or lower
CPI outlook downgrade due to oil price drop. Inflation to accelerate as impact of oil fades, but considerable uncertainty in outlook
Wage improvement somewhat slow but mechanism seen for inflation rise with wage growth. Risks include 2017 sales tax rise
Easing exerting intended effects, will continue until 2% inflation is stable. Will monitor risks, adjust policy as needed
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