Bank Of Japan Leaves Policy Unchanged, Downgrades Inflation, Continues 'Stealth' Taper

Yen is weaker following The BOJ's decision (with one dissent) to leave policy rates unchanged and maintain their JGB holdings target. BoJ did downgrade their inflation outlook but made no mention of its ongoing 'stealth' bond-buying taper.

  • BOJ Maintains 10-Year JGB Yield Target at About 0.000%

  • BOJ Maintains Policy Balance Rate at -0.100%

  • Bank of Japan Downgrades Assessment of CPI - BOJ Sees CPI in Range of 0.5% to 1.0%

  • As expected, the BOJ has retained the 80 trillion yen bond-buying target that hasn't been hit for some time now. This showcases just how careful the BOJ is about even the most minor tweak in its policy guidance.

The reaction is a weaker yen for now...

While The Bank of Japan's policies drift further and further away from The Fed and ECB (admittedly BoJ has tapered down its bond-buying ever so quietly), it is hardly surprising that Kuroda didn't go full hawktard as economic data has been dismal this year and a recession looms...

Japanese economic data is the most disappointing since 2014...

And the economy is shrinking once again...

 

While no official policy adjustment has been made, The BoJ has been stealth tapering for months...

“Market players have come to realize that the bond-purchase operations aren’t directly linked to monetary policy,” said Mari Iwashita, chief market economist at Daiwa Securities Co. in Tokyo. “Their action is dependent on conditions and does not indicate anything special in store.”

Again no mention of this tapering as The BoJ attempts to maintain the bond-buying program pace that it promised.

As @dmwlsw joked so accurately:

"BOJ doesn’t disappoint. Just continues to buy everything."

Kathy Matsui of Goldman Sachs summed things up nicely when she spoke to Bloomberg Television:

"When it comes to full blown 'let's end QE and lets begin the tapering process,' until inflation approaches something closer to the BOJ target of 2 percent, I think we are looking at continued central bank divergence for quite some time."

Comments

NidStyles Thu, 06/14/2018 - 22:58 Permalink

Japan is going to take the dive first and fuck everyone over. 

Payback is a bitch. 

 

Muffinman rides a Harley, who knew. He literally looks like a Muffin as well.

Yen Cross LetThemEatRand Thu, 06/14/2018 - 23:08 Permalink

 Rand, eventually the game ends when the cost of living, and stated unemployment rates have diverged to the point that an rabid retarded squirrel can't even steal a nut to live on.

 There's so much hidden stagflation, and inflation in global commodities markets.

  Printing isn't much of an option anymore. Not if the Globalist Socialist scumbags want their way.

In reply to by LetThemEatRand

nati Fri, 06/15/2018 - 00:31 Permalink

The number of comments under any given article on Japan is positively correlated to the number of fucks given about Japan.

bentaxle Fri, 06/15/2018 - 03:29 Permalink

"bond buying taper"....the contradiction alone is worth the entrance fee. Well it would be if it wasn't for some stupid bankers behind scenes orchestrating this stupidity.

Let it Go Fri, 06/15/2018 - 06:40 Permalink

Japan is the poster child and living proof that low-interest rates do not guarantee economic growth and prosperity. The whole world is on a path that mirrors the same unsuccessful path taken by Japan since its bubble economy popped decades ago. It is a path that avoids real reform and bails out the very people that caused many of our problems.

 The BOJ  is not only expanding their balance sheet but pumping up the market by jumping into the ETF market. All this has morphed into a program that seems to share a key focus on doing "whatever it takes" to keep the economy moving forward.

 http://Japans Economic Model  Leads Way In Nationalizing Debt.html

Money_for_Nothing Fri, 06/15/2018 - 07:53 Permalink

Japan society is shrinking. They may need to evacuate. The authorities are doing a good job managing the shrinking. Japan will continue to shrink (and have a deflating currency) unless they decide not to. See "A Rose for Ecclesiastes" by Roger Zelazny for a treatment of this situation in fiction.