BoJ: Very minor tweaks – Deutsche Bank

Analysts at Deutsche Bank note that the BoJ has kept its policy rates unchanged as widely expected by a majority vote of 7-2.

Key Quotes

“The statement itself has included only very minor tweaks including a vague reference to allowing upward and downward movement in the 10y JGB yield, as well as the introduction of forward guidance.”

“As expected inflation forecasts have been cut for FY19 (1.5% from 1.8%) and FY20 (1.6% from 1.8%) while the BoJ has also shifted ETF purchases from tracking the Nikkei to the Topix. A reference to reducing the size of financial institutions’ balances at the BoJ subject to negative rates was also introduced.”