Statement on Monetary Policy

Statement on Monetary Policy

From boj.or.jp

At the Monetary Policy Meeting held today, the Policy Board of the Bank of Japan decided to conduct yield curve control with greater flexibility. The July 2023 Outlook for Economic Activity and Prices (Outlook Report) shows that sustainable and stable achievement of the price stability target of 2 percent, accompanied by wage increases, has not yet come in sight, and thus the Bank needs to patiently continue with monetary casing under Quantitative and Qualitative Monetary Easing (QQE) with Yield Curve Control. In this context, taking account of extremely high uncertainties for economic activity and prices, it is ... (full story)

Added at 10:38pm

What's unchanged in Bank of Japan monetary policy:

Official 10-year JGB target: 0% (same)
Fluctuation range for 10-year: +/- 0.50% (same)

What's new:

BOJ will offer to purchase 10-year at 1.0% yield, instead of 0.50%.

Is the new practical cap 1%? We'll see pic.twitter.com/UH0lQDHiND
— Jack Farley (@JackFarley96) July 28, 2023

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swagtrading

Jul 27, 2023 11:18pm

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Quoting jordanvic

Disliked

As expected. Nothing new

Ignored

Many new things actually. BOJ tweeted their YCC and now 10-Year JGBs can move around 0.5%. Here are the main headlines.

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swagtrading

Jul 27, 2023 11:22pm

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Quoting ren03

Disliked

seems that boj shifted their 10Y JGB buy limit orders to +1.0%.. jgb now around +0.55%, so maybe(?) some more room for yen to appreciate

Ignored

Yeah. Thank more so on the crosses than vs USD.

jordanvic

Jul 28, 2023 12:11am

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Quoting swagtrading

Disliked

{quote} Many new things actually. BOJ tweeted their YCC and now 10-Year JGBs can move around 0.5%. Here are the main headlines. {image}

Ignored

yeah but they only tweaked their reaction range. that being said theres no way in hell i would short yen.

ffpa

Jul 28, 2023 1:19am

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Quoting jordanvic

Disliked

{quote} yeah but they only tweaked their reaction range. that being said theres no way in hell i would short yen.

Ignored

in the kingdomof blinds on-eyed man is a king. in other words - even this tweak imho adds volatility to jpy after years of passiveness

dantpm

Jul 27, 2023 11:00pm

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Since a BOJ interest rate change was supposedly the cause of yesterdays price adjustments, what next?
It is obvious so far that no one believes the BOJ.

atillaken

Jul 27, 2023 10:38pm

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Ueda and his team again did it. How much bribe ge gets from MM and exporters?

jordanvic

Jul 27, 2023 10:32pm

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As expected. Nothing new

jordanvic

Jul 27, 2023 11:17pm

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The "change" in policy is nothing new. they just increased their reaction range to give themselves more flexibility.

sada69

Jul 27, 2023 11:02pm

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Looks like BOJ has started changing its easing policy.

ren03

Jul 27, 2023 10:45pm

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They removed upper limit of 10 year JGB yield, but said will still buy if necessary.
I am seeing 10 year yields crossing +0.5% after the announcement

Hassa9

Jul 27, 2023 11:01pm

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I love this game

Trader#E6D7

Jul 27, 2023 11:04pm

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"Since a BOJ interest rate change was supposedly the cause of yesterdays price adjustments, what next?
It is obvious so far that no one believes the BOJ."

I don't agree... the are perfectly coherent... and I think also that USDJPY will be under 130 within the end of the year...

ren03

Jul 27, 2023 11:18pm

Permalink

seems that boj shifted their 10Y JGB buy limit orders to +1.0%.. jgb now around +0.55%, so maybe(?) some more room for yen to appreciate

Trader#64A9

Jul 27, 2023 10:39pm

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Trader#E6D7

Jul 27, 2023 10:40pm

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"the Policy Board of the Bank of Japan decided to conduct yield curve control with greater flexibility."

They change their approach... finally they change it!