BoJ Summary of Opinions (April monetary policy meeting)

Bank of Japan says that while the economy is picking up risks from a resurgence in COVID-19 remain and continue to warrant attention

  • Japan’s economy is likely to recover mainly on external demand, but the outlook remains highly uncertain
  • economy may see a sustained recovery once the pandemic subsides with households accumluating savings and deposits …. economy to benefit from unleashing pent-up demand 
  •  risks to Japan’s economy remain skewed to the downside due to uncertainty
    over pandemic fallout
  • global economic recovery remains uneven,
    also faces risks such as peak-out in growth, premature withdrawal of
    policy support
  • must be vigilant to chance of incidents
    similar to collapse of US family office
  • price falls among companies to draw in
    demand not broadening, inflation likely to gradually accelerate as
    economy improves
  • inflationary pressure lacks strength in
    japan
  • BOJ must focus on pandemic impact response
    as service sector remains under downward pressure

 more to come   

Full text 

At the April meeting the major planks of policy were left unchanged:

  • short-term interest target kept at -0.1%
  • 10 year JGB yield target remains around 0%
  • ETF buy cap stays at 12tln yen

The BOJ did nudge its forecasts for economic growth higher. 

Link here if you are after the background info to today’s ‘Summary’ from the Bank”:

Bank of Japan says that while the economy is picking up risks from a resurgence in COVID-19 remain and continue to warrant attention

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