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BOJ meeting: key points

  • As expected, the Bank of Japan left monetary policy unchanged, leaving the annual QE target 60-70 trillion yen
  • The BOJ Governor Kuroda explained on a press-conference, that an aggressive easing was maintained to compensate the impact of the April sales tax hike. Easing has an intended effect
  • Dovish point is that BOJ acknowledged housing investment slump post the sales hike
  • However, the major risk seen for the economy is external, not the effect of the tax hike
  • Despite the recent negative data, the BOJ believes the economy “is recovering as a trend”, private consumption is resilient
  • Inflation: CPI ex. Food prices and sales tax hike effect will stay unchanged at 1.25% in the short term. Inflation target of 2% will be reached in Oct 2015 – March 2016.


BOJ acknowledged there is some downbeat effect from the tax hike, but did’t disclose any additional easing intentions


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