22 Jan 2014
BoJ: Policy, CPI forecast unchanged; GDP downgrade
FXstreet.com (Bali) - BoJ monetary policy meeting came unchanged, with the CPI forecast also not being altered from recent projections.
The monetary policy was kept steady by unanimous vote, with the increase in monetary base retained at 60-70 trillion yen annual pace.
The core CPI is expected at 1.3% in FY 2014/15 – unchanged from October forecast (excluding effect of sales tax hike), while the core CPI is projected at 1.9% in FY 2015/16 – unchanged from October forecast (excluding effect of sales tax hike).
Board member Kuichi proposed a 2% inflation target as medium to long term goal, although it was refused by 8-1 votes against. On the growth prospects, Japan GDP is seen at 1.4% in FY 2014/15 vs. 1.5% projected in October, implying a downgrade of 0.1%.
The monetary policy was kept steady by unanimous vote, with the increase in monetary base retained at 60-70 trillion yen annual pace.
The core CPI is expected at 1.3% in FY 2014/15 – unchanged from October forecast (excluding effect of sales tax hike), while the core CPI is projected at 1.9% in FY 2015/16 – unchanged from October forecast (excluding effect of sales tax hike).
Board member Kuichi proposed a 2% inflation target as medium to long term goal, although it was refused by 8-1 votes against. On the growth prospects, Japan GDP is seen at 1.4% in FY 2014/15 vs. 1.5% projected in October, implying a downgrade of 0.1%.