The BOJ left interest rates unchanged at its Monetary Policy Meeting, but the market focused on its outlook that the inflation rate is approaching the 2% target and its raising of the inflation outlook in the Outlook for Economic Activity and Prices.
The BOJ decided to leave interest rates unchanged at its Monetary Policy Meeting. The market was reported to have viewed the hold as hawkish and shown a stance of exploring the possibility of future interest-rate normalization.
It was reported that the inflation outlook had been raised in the Outlook for Economic Activity and Prices, and the BOJ indicated that the inflation rate is approaching the 2% target. As a result, the direction of the BOJ's monetary policy drew market attention.
Measures including a change to the pace of ETF sales were also announced. While some view the long-term impact on the market as limited, points requiring attention remain regarding the outlook for the timing of future rate hikes. The BOJ governor's press conference is expected to focus on progress toward achieving the inflation target and the BOJ's explanations going forward.