VIEW: J.P.Morgan Weigh In On Today’s Decision

J.P.Morgan “while we think it is not sustainable for the BoJ to maintain the YCC for a long time, today’s decision indicates its strong intention to exit the YCC in a controlled manner.”

• “To improve market functionality, the BoJ decided to expand operations: extending by one year the deadline for loan disbursement under the Fund-Provisioning Measure to Stimulate Bank Lending, expanding the range of eligible counterparties for the Fund-Supplying Operations to Support Financing for Climate Change Responses to include member financial institutions of financial cooperatives, and enhancing the Fund-Supplying Operations against Pooled Collateral. The decision was made with a unanimous vote.”
• “The BoJ’s confidence of achieving its inflation target of 2% appears to be rising. Mr. Kuroda’s comments on the upward revisions to inflation forecasts in addition to the BoJ's assessment of the recent market pressure, will be in focus.”