BoJ left overnight call rate unchanged at 0-0.10% as widely expected, by unanimous vote. The BOJ says it will continue its Japanese government bond (JGB) purchases “in accordance with the decisions made at the March 2024 monetary policy meeting.”
Real GDP growth forecasts for fiscal 2024 was lowered sharply to 0.8%. But growth is expected to pick up moderately to 1.0% subsequently. CPI core forecasts was fiscal 2024 was raised to 2.8% and then slowed to 1.9% onwards. CPI core- core forecasts were left unchanged for both fiscal 2024 and 2025 at 1.9%. Fiscal 2026 CPI core-core is projected to pick up to 2.1%, which is a positive sign.
Real GDP growth forecasts:
- Fiscal 2024 at 0.8% (downgraded from 1.2%).
- Fiscal 2025 at 1.0% (unchanged).
- Fiscal 2026 at 1.0% (new).
CPI core forecasts:
- Fiscal 2024 at 2.8% (upgraded from 2.4%).
- Fiscal 2025 at 1.9% (upgraded from 1.8%).
- Fiscal 2026 at 1.9% (new).
CPI core-core forecasts:
- Fiscal 2024 at 1.9% (unchanged).
- Fiscal 2025 at 1.9% (unchanged).
- Fiscal 2026 at 2.1% (new).
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