The Bank of Japan keeps its policy unchanged and sticks to a dovish stance | Break

The BoJ statement maintained most of the previous text and kept its future guidance unchanged. Firmer-than-expected inflation is still not enough for the Bank of Japan to tilt its policy stance. In the statement, the BoJ expects inflation to slow and said core inflation has been around +3% due to pass-through price increases. At the press conference, Ueda said that “if inflation, accompanied by the wage target, is in sight, then the BoJ will consider ending the YCC and a rate change.” Overall, the Bank of Japan still thinks that higher-than-expected inflation is transitory and driven more by cost drivers.