BOJ - Bank of Japan

BOJ - Bank of Japan

12-MAY-2023

BOJ REVIEW: The BoJ's Summary of Opinions from the April meeting adhered to the central bank's dovish tone as it stated that they must continue with the current easy policy given uncertainty over the global outlook and must support the wage hike momentum through monetary easing. It also noted that the achievement of the price target appears to have come in sight, but they must maintain easy policy for the time being given downside and upside risks, as well as ensure that the tweak to interest rate forward guidance is not interpreted as a sign that the BoJ would allow future rate hikes and should not target a specific monetary policy change when guiding the policy review to ensure it would be neutral and convincing. Furthermore, the central bank stated that Japanese inflation is likely to approach the BoJ's target as wages rise. but it will take time and uncertainty is high, while it added there is a risk that sluggish real wages may push inflation well below 2% and not return to the target level.