BoJ: No fireworks offered – Danske Bank

Analysts at Danske Bank point out that the Bank of Japan kept its QQE with yield curve control and its forward guidance unchanged at a meeting ending this morning.

Key Quotes

“At the same time, it cut the inflation outlook significantly by 0.5pp in the fiscal year (Apr-Mar) 2019. The growth outlook was also cut but only for the current fiscal year whereas the FY 2019 and FY 2020 forecasts were revised slightly upwards.”

“On the recent global development, the BoJ kept the sentence 'overseas economies have continued to grow firmly on the whole'. This highlights that the BoJ expects the current global slowdown to be temporary and the recent weak Japanese export figures to bounce back once a trade agreement has been reached between the US and China.”