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MNI BoJ Review – April 2023: Guidance Tweaks & A Deeper Review

BOJ
  • The BoJ left its major monetary policy levers unchanged at the end of Governor Ueda’s first meeting atop the central bank, as was widely expected, although made a more forceful tweak to its forward guidance than many expected.
  • The Bank also launched a wider review of the ultra-loose monetary policy settings deployed since the 1990s. The post-meeting statement revealed that the review will likely take 1-1.5 years to complete, which left many market participants pointing to a distinctly dovish outcome.
  • Ultimately, the growing inflationary pressure in Japan leaves a relatively near-term tweak to YCC on the table. We still point to July’s meeting as a more likely staging post than June for that move.
  • See full preview here.

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