Analysts at UOB Group explained that last Friday, the Bank of Japan (BoJ) left its main policy settings unchanged i.e. the -0.1% interest rate on banks’ marginal excess reserves and its pledge to keep 10Y JGB yields at around 0%.
"Neither did it alter its purchase targets for JGBs, ETFs or J-REITs. Board member Goushi Kataoka continued to dissent in favour of the Bank pursuing a more accommodative policy stance."
"However, the majority of the Board believes that current policy settings are sufficient to help the economy maintain a moderate expansion, which they hope will generate a more positive output gap, lift inflation expectations and eventually lift inflation to the Bank’s 2% target. Two new Deputy Governors will join the Board for the next meeting."
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