BoJ remain confident 2% inflation target will be reached - UOB

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%. 

Key Quotes:

"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."

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 securities. 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 Forex 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.