The Bank of Japan have concluded their two-day monetary policy meeting with no change to policy, as expected.
- BOJ keeps monetary policy steady by unanimous vote
- Pledges to increase monetary base at annual pace of 60-70 trln yen
- The board turns down by 8-1 vote proposal by Kiuchi to make 2%t inflation target a medium- to long-term goal
- Says economy continues to recover moderately as a trend, keeps assessment unchanged
- Revises up assessment on overseas economies
- Says overseas economies are recovering although lacklustre performance still seen in some areas
- Says industrial output continues to rise moderately as a trend
Next up from the BOJ will be Kuroda’s press conference at 0600GMT
Japan’s central-bank chief predicted victory in his battle to root out the deflation that has long sapped economic vitality in the world’s third-largest economy, but expressed impatience with the government’s pace in cutting red tape and encouraging businesses to invest more.
“Implementation is key, and implementation should be swift,” Bank of Japan Gov. Haruhiko Kuroda said in an interview with The Wall Street Journal. “The major work to be done is by the government and the private sector.”
Mr. Kuroda’s comments mark an important shift in tone more than a year after he was tapped by Japanese Prime Minister Shinzo Abe to engineer a newly aggressive monetary policy. The resulting “bazooka” of stimulus actions, including the purchase of trillions of yen in government bonds and other assets, has fueled Japan’s longest economic growth streak in nearly four years and a steady stream of positive inflation readings. >> Read More
Link to full text of announcement – go on, click on it … easy reading LOL
The bank has updated its economic forecasts today-
- Keeps policy steady by unanimous vote-
So far, that’s all we’ve got our of the BOJ – the announcement is one line of text:
The Bank of Japan will conduct money market operations so that the monetary base will increase at an annual pace of about 60-70 trillion yen.
Yep, that’s it.- >> Read More
The BOJ do a Tankan survey every 3 months, while Reuters conducts one each month (a total of 253 firms responded to the poll of 400 big and medium-sized firms taken April 2-14).
- Japan manufacturers index +25 in April, up 7 points from the +18 in March (the highest since August 2007)
- Japan non-manufacturers index at record +35 in April, up 4 points from March
- Japan manufacturers July index seen at +17, non-manufacturers +21
-Confidence at Japanese manufacturers grew in April for the first time in three months
- A more moderate dip is seen over the next three months-
This augurs well, but it does dent hopes for more BOJ stimulus
- Industrial Production for February m/m (final): prior was -2.3 %
- Industrial Production for February y/y: prior was 6.9%
- Capacity Utilization m/m for February: prior was 5.9%
Then, at 0615GMT, Bank of Japan (BOJ) Governor Kuroda will speak at the 89th Convention of the Trust Companies Association of Japan
Minutes of the Bank of Japan (BOJ) March 10-11 policy board meeting:
- Members agreed that prices, economy moving in line with BOJ forecasts
- Members agreed they need to monitor risk to markets posed by Ukraine and geopolitical risk
- Agreed that weakness in exports is temporary and that exports will pick up gradually in future
- Agreed than increases are wages are spreading
- One member said that its possible that the impact of the weak yen on consumer prices has grown
- One member said that inflation in H2 of 2013 was somewhat higher than expected
- Members agreed that consumer spending is to remain firm after the sales tax hike due to improvements in the job market and in wages
-Again, it appears from comments that there is no pressure felt at the BOJ to ease further just yet.
Link to the full text
The results of the Bank of Japan’s Tankan Survey (survey of manufacturing and service companies designed to assess business conditions in Japan). Its conducted quarterly.
Tankan Large Manufacturing Index Q1, 17
- expected 19, prior was 16
Tankan Large Non-Manufacturing Index Q1, 24
- expected 24, prior was 20
Tankan Large Manufacturing Outlook Q1, 8
- expected 13, prior was 14
Tankan Large Non-Manufacturing Outlook Q1, 13