**As seen in Risk In The Week report 12/16/22, cablefxm.co.uk/reports
The Bank of Japan meeting was held back in October, we did not have and adjustment in policy as usual. The policy rate was held at -0.1% while the 10-year JGB target yield remains at around 0%. Both YCC and asset purchases were voted unanimously, this does not mean that we have not heard some divergence in views from BoJ officials. On the projections front, we saw the bank adjust their GDP forecast lower to 2.0% from 2.4% in FY 2022, growth is seen slowing to 1.9% in FY 2023. Inflation was revised higher across the forecast horizon, 2022 CPI is expected at 2.9%, the 2023 projection is seen at 1.6%. Also, the central bank penciled corporate profits weakening from current levels as companies are impacted by high material costs and slowdowns in overseas economies. The desk at MUFG says they hold their view that the BoJ is unlikely to make any major changes to monetary operations before March 2023, but note that the central bank could start planning its next fund supplying tools as it ends its COVID countermeasure operations.
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