"Bank of Japan Maintains Expected Policy Stability Despite Inflation Forecast Trim"

The Bank of Japan has announced no changes to its monetary policy, keeping its short-term interest rate target at -0.1% and the 10-year bond yield around 0%, with flexibility up to 1%. While core inflation forecasts remain unchanged for fiscal 2023 to 2025, core CPI forecasts have been trimmed. The BOJ's quarterly report indicates balanced risks to economic activity and emphasizes the need to monitor the relationship between wages and prices. The bank pledges to continue with monetary easing and stands ready to take additional steps if necessary, while expressing optimism about Japan's economic recovery and the gradual heightening of inflation expectations.