BOJ leaves short term at 0.5%, as expected

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Bank of Japan Statement and Outlook Report

Short term rate left at 0.5%, as expected.

  • Core CPI fiscal 2025 Median Forecast at +2.7% vs previous +2.2%
  • Core CPI fiscal 2026 Median Forecast at +1.8% vs previous +1.7%
  • Core CPI fiscal 2027 Median Forecast at +2.0% vs previous +1.9%
  • Core-Core CPI fiscal 2025 Median Forecast at +2.8% vs previous +2.3%
  • Core-Core CPI fiscal 2026 Median Forecast at +1.9% vs previous +1.8%
  • Core-Core CPI fiscal 2027 Median Forecast at +2.0% vs previous +2.0%

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  • BOJ REPORT: Underlying inflation likely to stall due to slowing growth but gradually accelerate thereafter

  • BOJ REPORT: Underlying consumer inflation likely to be at level generally consistent with 2% target in second half of projection period from fiscal 2025 through 2027

  • BOJ REPORT: Risks to inflation outlook roughly balanced

  • BOJ REPORT: Risks to economic outlook skewed to downside

  • BOJ REPORT: Uncertainty over trade policy and its developments, impact on economic, price outlook remains high

  • BOJ REPORT: Risks to inflation outlook roughly balanced

  • BOJ REPORT: Real interest rates are at extremely low levels

  • BOJ REPORT: Must have no pre-conception in judging whether economy, prices moving in line with forecast

  • BOJ REPORT: Will conduct monetary policy as appropriate from perspective of sustainably, stably achieving 2% inflation target

  • BOJ REPORT: There is high uncertainty surrounding trade policy developments and their impact on economy

  • BOJ REPORT: Will continue to raise policy rate if economy, prices move in line with forecast, in accordance with improvements in economy, prices

  • BOJ REPORT: Prolonged period of high uncertainties regarding trade policies could lead firms to focus more on cost cutting

  • BOJ REPORT: As a result, moves to reflect price rises in wages could also weaken

more to come

This article was written by Eamonn Sheridan at investinglive.com.



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