BOJ disappoints, no change in policy

The BOJ has decided to stand put, keeping the policy unchanged, with the interest rate at -0.1%.

Headlines - via Reuters

BOJ says keeps monetary policy steady

Will take additional easing steps in 3 dimensions of quantity, quality and interest rate, if needed to hit price target

To adopt loan support programme for banks in areas hit by southern Japan quake

Total amount of loans for new fund supply operation is set at 300 bln yen

Will provide loans to banks at quake-hit area at zero interest rate

Japan consumer inflation to hit 2 pct during fiscal 2017

Japan econ likely to expand moderately as a trend

Negative impact on prices from energy price falls likely to remain until early fiscal 2017

Pickup in exports moderating

Private consumption is firm although some weaknesses seen

Industrial output is moving sideways but seeing some effects from earthquake in southern Japan

Inflation expectations rising as a whole in somewhat long-term perspective but weakening somewhat recently

Companies are maintaining their positive stance towards setting higher prices for their goods

Expected rises in wages will gradually push up inflation

Must be mindful of risk that market uncertainty, slowdown in emerging markets could hurt business confidence

Japan core CPI expected +0.5 pct in fy2016/17 vs +0.8 pct projected in January

Japan core CPI expected +1.7 pct in fy2017/18 vs +1.8 pct projected in January

Japan core CPI expected +1.9 pct in fy2018/19

japan real GDP expected +1.2 pct in fy2016/17 vs +1.5 pct projected in January

Japan real GDP expected +0.1 pct in fy2017/18 vs +0.3 pct projected in January

Japan real GDP expected +1.0 pct in fy2018/19