BoJ: No changes in monetary conditions – UOB

Senior Economist at UOB Group Alvin Liew comments on the latest BoJ meeting.

Key Quotes

“The Bank of Japan (BOJ), as widely expected, decided to keep its policy measures unchanged at its Monetary Policy Meeting today (18 Jun) from its April MPM.”

“The risks to economic outlook are still related to high uncertainties over COVID-19 and its impact to Japan and overseas economies. The outlook on prices remain the same from April MPM with inflation expectations more or less unchanged.”

“Today’s policy inaction was in line with market expectations and reinforces the view that the BOJ will not be tightening anytime soon and will maintain its massive stimulus in the next few years, possibly at least until FY2023. We also keep our view for the BOJ to do more and enhance its monetary policy easing further and we are also cognizant that market expectations are now tilted to the BOJ having reached the limits of its monetary policy and will remain in a holding pattern on policy until at least April 2023 when Governor Kuroda is scheduled to leave the BOJ.”