The Bank of Japan (BoJ) kept its monetary policy unchanged with an 8-1 vote as widely expected, notes the research team at Danske Bank.
Key Quotes
“The BoJ downgraded its assessment of inflation and now sees the CPI inflation in a range of 0.5-1% which indicates that the BoJ might revise down its inflation outlook when it releases its quarterly forecast update in July. Hence, the BoJ is not in the normalisation camp with central banks like the Fed and ECB.”
“We expect the BoJ to keep its current yield curve control unchanged for the next 12 months. USD/JPY trades slightly higher after the announcement and has generally been supported by a constructive risk sentiment overnight.”
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