Key Points from the BOJ Meeting

Key Points from the BOJ Meeting

  • Bank of Japan on Wednesday raised its estimate of the economy for the 5 consecutive month amid signs of the recovery is under way .
  • Monetary policy unchanged as it seeks to beat deflation and generate 2% inflation in two years .
  • BOJ board decided unanimously to maintain its policy of increasing the monetary base at annual pace of Y60 trillion to Y70 trillion.
  • Takahide Kiuchi proposed that the central bank’s inflation commitment be characterized as something to be implemented in “the medium to long term,” and that the current easing policy be seen as “as an intensive measure with a time frame of about two years.” But his proposal was voted down 8-1.
  • BOJ made no mention of the recent rises in Japan government bond yields that have unsettled market participants

Basically they have made the choice of policy last month , now they have to wait and see if the policy take effect .

Watch this space .

 

Tony Evans

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http://www.bloomberg.com/news/2013-05-22/boj-affirms-easing-plan-after-biggest-jump-in-yields-in-5-years.html

http://e.nikkei.com/e/fr/tnks/Nni20130522D22JF676.htm

 

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