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:
- 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%.
- 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
Subscribe Now to RANsquawk
Click here for a 1 week free trial
RANsquawk provides audio news and commentary for over 15,000professional traders and brokers worldwide. Services include:
- Real-time audio coverage from 0630 to 2200 London time plus Asia-Pac 2200 to 1000 London time
- Teams of analysts covering equities, fixed income, FX, energy, and metals markets
- Real-time scrolling news service with instant analysis
- Daily and weekly pre-market research and calendars
- Video updates covering near-term key risk events & primary trading themes
- One-to-one chat with our expert analysts