Bank Of Japan Commentary

August 2nd 2018


BoJ Deputy Governor Amamiya says momentum for reaching goal is maintained, adds will take time to hit target and that it is appropriate to maintain powerful monetary easing

- BoJwon'tloosen grip on monetary easing just because achieving
price goal is delayed.
- BoJ has not changedlong=term target and is not assuming rate will keep increasing ahead.


Source: BoJ


6th September 2018


BoJ Board Member Kataoka sees low chances for Japan's economy momentum to reach price target being heightened under current framework, adds didn't need to allow more flexibility in long-term yields when BoJ was reducing price forecasts.


Source: BoJ


18th September 2018


BoJ Minutes from July meeting states that most stated it was appropriate to continue persistent easing and a few members said it was appropriate to adopt forward guidance to strengthen commitment to reach target

  • Some members said flexible control of long-term yields would contribute to maintaining and improvement of market function

  • Most members agreed to the proposal that Governor Kuroda should make it clear at the briefing that yield would be allowed to move both directions at double the current range.


Source: BoJ


BoJ's Kuroda says it will take longer than expected to meet their price goal, and that they do not have a specific timeframe on how long to keep policy easy under forward guidance.



BoJ's Kuroda says that they want to achieve 2% inflation at the earliest possible date so they can enter the process of normalizing monetary policy


Source: BoJ


BoJ's Kuroda says BoJ will not adjust monetary policy with inflation still half-way through the Bank's 2% inflation target.


BoJ's Kuroda states that the likelihood of interest rate differential widening between US and Japan would lead to an increase in USD/JPY (all things equal)


26th September 2018


BoJ's Kuroda says the domestic economy is expanding moderately and they must continue moderate easing patiently to support the improvement in the output gap


Source: BoJ