Overnight, the BoJ left key interest rates and asset purchase targets unchanged while the BoJ’s quarterly outlook report indicated that inflation will remain below its 2% target at least until early 2021 and lowered the 2018 GDP growth forecast to 1.4% from 1.5%, explains the research team at Deutsche Bank.
Key Quotes
“The BoJ also added a statement in its outlook report about the need to “pay close attention to future developments” regarding risks to the financial system, while saying that the risks are not currently significant thanks to sufficient capital bases. The BoJ is also seeing the current core-CPI rising to around 1% yoy from earlier range of 0.5%-1%, which was lowered at June meeting.”
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