BoJ Quarterly Report: Inflation likely to continue increasing towards 2% target

The BoJ released its quarterly economic assessment report alongside the policy announcement, with the key headlines found below.

Japan core CPI expected +1.4 pct in fy2018/19 vs +1.4 pct projected in October.  

 Japan core cpi expected +1.8 pct in fy2019/20 vs +1.8 pct projected in Oct.

 BoJ raises assessment on inflation expectations in quarterly report.

 BoJ extends the deadline for its loan programmes aimed at boosting growth potential by 1 year.

Japan's economy expected to expand moderately.

BoJ will maintain QQE with yield curve control for as long as needed to stably hit 2 pct inflation.

BoJ will adjust policy as needed to sustain momentum to hit price goal with an eye on the economy, price and financial developments.

Risks to economy roughly balanced.

Risks to prices tilted to the downside.

Inflation expectations recently moving sideways.

Inflation likely to continue increasing towards 2 pct.

CPI accelerating but moves remain weak.

Momentum for hitting 2 pct inflation is maintained but lacks strength.

Consumer inflation currently moving around 1 pct.

Inflation expected to reach 2 pct around fiscal 2019/20.

Inflation expectations and job market pose both upside, downside risks.

 Moves in forex and commodities markets pose both upside, downside risks.

 Prices for some goods are insensitive to changes in the supply-demand gap.

Loss of trust in fiscal policy could increase uncertainty, lead to rise in long-term yields.

BoJ's decision on yield curve control made by 8-1 vote, board member Kataoka dissents.

Board member Kataoka says BoJ should buy JGBs so yields of bonds with maturities of 10 years or longer fall broadly.