PREVIEW: BoJ Minutes from July 19th-20th meeting due at 0050BST/1850CDT/0750HKT

The BoJ are to release the meeting minutes from the July 19th-20th policy decision, where the central bank maintained QQE with yield curve control policy and kept NIRP at -0.10% as expected. At the meeting, the BoJ also released it Outlook Report, raised its assessment of the economy and delayed the timeframe to reach its 2% inflation target to FY 19/20 from FY18/19.

The BoJ’s Outlook Report showed median forecasts for Real GDP and Core CPI:
Real GDP:
- Fiscal 2017 forecast raised to 1.8% from 1.6%.
- Fiscal 2018 forecast raised to 1.4% from 1.3%.
- Fiscal 2019 forecast maintained at 0.7%.

Core CPI:
- Fiscal 2017 forecast cut to 1.1% from 1.4%.
- Fiscal 2018 forecast cut to 1.5% from 1.7%.
- Fiscal 2019 forecast cut to 1.8% from 1.9% (excluding effect of consumption tax hike).

The previously released Summary of Opinions from this meeting showed members viewed that CPI Y/Y is likely to increase gradually towards 2% with the target likely to be reached by around fiscal 2019 and that there was an opinion that the range of the target level of 10yr JGB yields of around 0 % should not be interpreted too strictly.

Today’s release is not expected to have a significant effect on Japanese asset classes considering that the decision itself and its Summary of Opinions failed to impact markets, while there was also a more recent meeting last week which also failed to have a sustained impact on asset classes.

25 Sep 2017 - 22:40- Fixed IncomeData- Source: RANsquawk

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