BoJ keeps monetary policy unchanged today, despite some speculation of at least a minor tweak to the yield curve control. Short term policy rate is held at -0.10% and 10-year JGB yield target is kept at around 0%, by unanimous vote.
The band for 10-year JGB yield fluctuation is also kept at plus and minus 0.50% from the target level, by 8-1 majority vote. Nakamura Toyoaki dissented with preference for allowing greater flexibility in conducting YCC.
In the new economic forecasts, BoJ upgraded CPI core and CPI core-core forecasts for fiscal 2023, but other projections are kept largely unchanged.
- Real GDP growth at 1.3% in fiscal 2023, downgraded from 1.4% as made in April.
- Real GDP growth at 1.2% in fiscal 2024, unchanged.
- Real GDP growth at 1.0% in fiscal 2025, unchanged.
- CPI core at 2.5% in fiscal 2023, upgraded from 1.8%.
- CPI core at 1.9% in fiscal 2024, downgraded from 2.0%.
- CPI core at 1.6% in fiscal 2025, unchanged.
- CPI core-core at 3.2% in fiscal 2023, upgrade from 2.5%.
- CPI core-core at 1.7% in fiscal 2024, unchanged.
- CPI core-core at 1.8% in fiscal 2025, unchanged.
