BoJ: No surprising outcome - Rabobank

The Bank of Japan’s December monetary policy meeting presented no surprising outcomes, showing no changes to its interest rate or QQE with YCC policy, according to analysts at Rabobank.

Key Quotes

“This was no surprise given that the BoJ already extended its timeframe for realizing their (core) inflation target of 2% in the October meeting while they reaffirmed to continue their extremely accommodative policy because inflation remains far from this target. Although Japan has experienced seven consecutive quarters of GDP growth, increasing capacity shortages and a very tight labour market, core inflation (in Japan: ex. fresh food but not energy prices) only reached 0.8% in October, and 0.2% if you do exclude energy prices. As such, the BoJ may be one of the last major central banks to reverse out of its extremely accommodative policy settings.”