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

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 

EUR/USD News

GBP/USD: Further restrictions in the UK may hit the pound

The GBP/USD pair trimmed most of its weekly gains on Friday and settled in the 1.3580 price zone, amid risk-off fueling dollar’s demand. UK GDP contracted by less than anticipated in November, Industrial Production plunged. GBP/USD is at risk of extending its decline in the near-term.

GBP/USD News

Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures