Breaking: BoJ leaves monetary policy settings unadjusted, USD/JPY advances

Following the conclusion of the June meeting, the Bank of Japan (BoJ) board members decided to leave their current monetary policy settings unchanged, maintaining rates and 10yr JGB yield target at -10bps and 0.00% respectively.

Summary of the statement

No change to the yield band.

BoJ maintains band around its 10-year JGB yield target at up and down 0.5% each.

BoJ made decision on YCC by unanimous vote.

Japan’s economy picking up.

Japan’s economy likely to continue recovering moderately.

Japan’s core consumer inflation likely to slow pace of increase towards middle of current fiscal year.

Exports, output moving sideways.

Capex increasing moderately.

Consumption increasing moderately.

Inflation expectations moving sideways after heightening.

Uncertainty regarding japan’s economy is very high.

Amendment to “principal terms and conditions of complementary deposit facility.

There is no change in the framework of the complementary deposit facility and the interest scheme to promote lending.