BoJ downgrades inflation forecast, more optimistic on growth

FXStreet (Bali) -The Bank of Japan statement is out, with no change in monetary policy being announced, while it downgraded CPI and upgraded growth forecasts.

Main headlines

BOJ keeps monetary policy steady, pledges to increase monetary base at annual pace of 80 trln yen

Decides to extend deadline for loan programmes aimed at encouraging banks to boost lending beyond March

Decides to expand size of loan programme aimed at encouraging banks to boost lending

Deadline for loan programmes extended by 1 year

Says expands loan programme for growth industries to 10 trln yen from 7 trln yen

BOJ’s policy decision on base money was made by 8-1 vote Japan

core CPI expected +1.0 pct in fy2015/16 vs +1.7 projected in October

Japan core CPI expected +2.2 pct in fy2016/17 vs +2.1 projected in October

Japan core CPI +0.9 pct in fy2014/15 vs +1.2 projected in October

Japan real GDP expected +2.1 pct in fy2015/16 vs +1.5 projected in October

Japan real GDP expected +1.6 pct in fy2016/17 vs +1.2 projected in October

Japan real GDP expected -0.5 pct in fy2014/15 vs +0.5 projected in October