### POV: A TWEAK IN THE BOJ STATEMENT, BUT......>

BOJ: ### POV: A TWEAK IN THE BOJ STATEMENT, BUT NOT THE OVERALL MESSAGE

- The latest BoJ Monetary policy decision saw the Bank introduce the following

phrase to the statement: "the Bank will not hesitate to take additional easing

measures if there is a greater possibility that the momentum toward achieving

the price stability target will be lost."

- While Gov. Kuroda spent some time noting that the inclusion of such rhetoric

meant that the Bank is now "more positive" re: additional easing, we would argue

that the inclusion of the phrase doesn't necessarily reveal anything new.

- At least 5 BoJ Board members (i.e. a majority) have used that exact

phraseology, or similar, over the past 12 months or so, including Governor

Kuroda himself, both Deputy Governors, Wakatabe & Amamiya, in addition to Harada

& Funo.

- This probably indicates that the BoJ is cognisant of the idea that it is

facing limitations re: the prospect of further easing, so wanted to build on

ideas already apparent in its thought process, as it is wary of depleting its

arsenal.