BOJ keeps inflation forecasts unchanged, revises up GDP
In today's decision, the Bank of Japan has also updated its outlook on groowth and inflation, with the former revised up marginally, while the latter sees no change against market expectations, noting inflation is expected to remain on a weak note.
Main headlines
Core cpi expected +1.5 pct in fy2017/18 vs +1.5 pct projected in nov
Core cpi expected +1.7 pct in fy2018/19 vs +1.7 pct projected in nov
Core cpi expected -0.2 pct in fy2016/17 vs -0.1 pct projected in nov
Japan GDP revised up to around 0.5 pct from 0-0.5 pct
Likely to see inflation reach 2 pct around fiscal 2018
Uncertainty on overseas economies including us monetary policy, china, brexit pose downside risks
If confidence in japan fiscal sustainability falls, could cause uncertainty, leading to rise in long term yields
If confidence in japan's fiscal policy improves, could be upside risk for economy
There is risk firms could be cautious about setting prices and wages
Moves in fx, other commodities pose both upside, downside risks to main scenario
Uncertainty on overseas economies including us monetary policy, china, brexit pose downside risks
Japan economy continues moderate recovery trend
Quarterly report: Japan economy likely to expand moderately ahead
Risks to economy, prices tilted to downside
Momentum to achieve 2 pct price goal maintained but lacks strength
BOJ QQE with yield curve control until needed to stably achieve 2 pct inflation
BOJ will make policy adjustments as appropriate looking at econ, prices, financial conditions
Inflation expectations remain on weak note
Author
Ivan Delgado
Independent Analyst
Established in the Asian continent since 2009, Ivan studied a degree in Business at the University Pompeu Fabra (Barcelona), while also earning a postgraduate degree in Business Administration.
