BoJ maintains overnight rates at 0.1%

• BOJ makes decision on JGB purchases by 8-1 vote.
• BOJ Board Member Nakamura dissented to decision on JGB purchases.
• BOJ’s Nakamura dissented to decision on JGB purchases, saying bank should decide to reduce it after reassessing developments in economic activity and prices in July 2024 Outlook Report.
• Decided to trim bond buying to allow long-term interest rates to move more freely.
• Will decide on specific bond buying reduction plan for the next 1-2 years at next policy meeting.
• BOJ: Uncertainties surrounding economic, financial developments at home remain high.
• BOJ: Japan’s economy has recovered moderately, although some weakness has been seen.
• BOJ: Inflation expectations have risen moderately.
• BOJ: Financial conditions have been accommodative.
• BOJ: Private consumption has been resilient.
• BOJ: Private consumption has been resilient although the impact of price rises has remained and auto sales have continued to be pushed down.
• BOJ’s Nakamura was in favor of the idea of reducing BOJ’s purchase amount of JGBs.
• BOJ: Will hold a meeting with bond market participants on today’s policy decision.
• BOJ: Decided to trim bond buying to allow long-term interest rates to move more freely.
• BOJ: Will decide on a specific bond buying reduction plan for the next 1-2 years at the next policy meeting.
• BOJ: Necessary to pay due attention to developments in financial and forex markets.
• BOJ: Underlying CPI inflation expected to rise gradually.
• BOJ: Industrial output has been more or less flat as a trend.
• BOJ: Industrial output continues to be pushed down recently by suspension of production and shipment at some automakers.

This article was written by Arno V Venter at www.forexlive.com.