(JP) BANK OF JAPAN LEAVES INTEREST RATE UNCHANGED - BOJ Gov Kuroda press conference via TradeTheNews


05:30 *(JP) BANK OF JAPAN (BOJ) LEAVES INTEREST RATE ON EXCESS RESERVES (IOER) UNCHANGED AT -0.10%;


AS EXPECTED; extends pandemic-relief program (as speculated) until Mar 2022 Details of decision

- Leaves Interest Rate on Excess Reserves (IOER) unchanged at -0.10% (as expected)

- Maintains 10-year JGB yield target (YCC) of 'around 0.00%' (as expected)

- Maintains QQE to float +/-25bps from yield curve control (YCC)

- Maintains unlimited asset purchases at annual pace

- Maintains Annual ETF purchases at ¥12.0T

- Maintains annual JREIT purchases at ¥180B

- Maintains CP and Corporate bond holdings total at ¥20T Vote:

- Decision to keep Interest Rates unchanged was 7-1 (dissenter Kataoka)

- Decision to maintain YCC was 6-1-1 (dissenter Kataoka; abstention Masai)

- Decision to maintain asset purchases 7-0-1 (one abstention; Masai)

Statement:

- Reiterates to take more action if needed - Reiterates forward guidance that expects short-term and long-term rates to remain at present or lower levels

- Maintains overall economic assessment that domestic economy was picking up as a trend; uncertainty remained due to pandemic ; cuts outlook on consumption

- Introduces new funding measures for climate change

- To extend pandemic measures until March 2022 (7-0-1 vote)

- To present successor for fund provisioning in July (next meeting)

**Insight:

Climate-change lending program, to be inaugurated this year, will build on a previous program to help banks extend loans to growth sectors of the economy.


BOJ Gov Kuroda press conference at 02:30 ET (06:30 GMT)

(JP) BOJ Gov Kuroda:

Corporate financing likely to remain under stress; will take a while for pandemic to subside - post rate decision press conference

- Reiterates its overall economic assessment that domestic economy was picking up as a trend; uncertainty remained due to pandemic

- Exports have continued to increase steadily; recovery in overseas economies a positive for Japan - Inflation expectations are moving sideways

- Core CPI seen around zero (0%) in the near term

- Prices to gradually rise as economy recovers

- Believes that rapid price rise in US and Europe are temporary

- Reiterates stance that will not hesitate to ease if needed; can take various steps - including rate cuts

- Climate change has the ability to impact the economy greatly; govt should lead policy on issue

- BOJ already buys green bonds through the corporate bond buying scheme

- Not thinking about stopping EFT purchases or selling the holdings

- Pace of vaccination has picked up rapidly; pent-up demand likely to emerge

- Expects JPY currency (Yen) to weaken under a scenario of better US growth and higher inflation where Fed begins to tapers.

**Note: Japan May National CPI Ex-fresh food) (core) registered its first rise in since Mar 2020 with YoY at 0.1% v 0.0%e.

Related ( USD/JPY EUR/JPY EWJ AUD/JPY JPY/USD JPY/EUR CAD/JPY JOF JGB JPBOJ FXY ) - Source TradeTheNews.com


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