BoJ: No fireworks this time – BBH

Analysts at BBH notes that the BOJ met and left policy on hold, as widely expected. 

Key Quotes

“Since September, it has targeted the 10-year yield at zero, which in practical terms may mean +/- 10 bp.  This appears to have reduced the amount of bonds it is buying, and some see in this a tapering.  In addition, Bloomberg estimates that about JPY40.5 trillion of bonds on its balance sheet will mature next year.”

“The BOJ will provide new forecasts next month, but the Cabinet did so today.  It is projecting 1.5% GDP growth in 2017, up from 1.2%   Nominal growth is put at 2.5% compared with 2.2% forecast in September.  The budget will be JPY97.5 trillion, a small (0.8%) increase from the previous estimate.  More spending is customarily provided in one or more supplemental budgets.”