BOJ: Japan likely to see inflation reach 2% around fiscal 2018

Key headlines hitting the wires from the BOJ policy statement, via Reuters, are here under:

On Policy:

Maintains short-term interest rate target at -0.1 pct

Maintains 10-year jgb yield target around zero pct

Leaves unchanged pledge to buy jgbs more or less at current pace so its holdings increase at annual pace of around 80 trln yen

On Quarterly outlook report:

BOJ raises economic assessment

Japan likely to see inflation reach 2 pct around fiscal 2018

Moves in fx, commodities markets pose both upside, downside risks to prices

Possible for firms to become more cautious on prices and wages

Some uncertainty over how far inflation expectations will rise given slightly weak consumer prices

Japan's economy turning towards moderate expansion

Economy, price risks tilted towards downside

Output, exports on upward trend

Japan economy likely to continue moderate expansion

Momentum towards hitting 2 pct target lacking

Long-term inflation expectations remain on weak note

Uncertainties about overseas economies could pose some downside risks for japan economy

Japan real gdp expected +1.6 pct in fy2017/18 vs +1.5 pct projected in jan

• real gdp expected +1.3 pct in fy2018/19 vs +1.1 pct projected in jan
• real gdp expected +0.7 pct in fy2019/20

Japan core cpi expected +1.4 pct in fy2017/18 vs +1.5 pct projected in jan

• Core cpi expected +1.7 pct in fy2018/19 vs +1.7 pct projected in jan
• Core cpi expected +1.9 pct in fy2019/20