BoJ: No change in policy variables - TDS

Analysts at TDS point out that there was no change in policy variables from the BoJ, although a move at today’s meeting was always highly unlikely.

Key Quotes

“While growth remains above potential and inflation is edging higher despite the March slip, the 2% target is still elusive with headline and core inflation at 1.1% y/y and 0.9% y/y, respectively.”

“Despite some weakness in growth indicators such as industrial production over Q1 18 the BoJ does not appear to be overly concerned, with forward-looking indicators such as machinery orders pointing to some pick up. In our view, the 'official' removal of the time horizon for hitting the 2% target is supportive for JPY as it implies less need for more aggressive policies ahead.”