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Economic Indicator Bank of Japan Monetary Policy Meeting Minutes

Next Release: Tuesday, July 16, 23:50 GMT (Usually released about 30-50 days after the overnight call rate is announced.)

Source of Report: Bank of Japan

 Upcoming Release Commentary

The Bank of Japan left its monetary easing program unchanged and raised its outlook for the economy, as a rise in corporate and consumer sentiment encouraged spending.  In the latest sign of an uptick in the economy, business confidence among Japan’s biggest manufacturers surged in the past three months, according to a closely-watched central bank survey. The central bank  slightly adjusted its growth forecasts, with a fresh median forecast at 2.8 percent. The BoJ said the growth rate and inflation are likely to move “broadly in line with the April forecasts”.  Huge government spending pledges, coupled with sustained monetary easing, have driven down the value of the yen and given a boost to exports. But critics of the gigantic bond-buying scheme are questioning how the country’s massive public debts will be tackled in the long-run.

How it impacts the Japanese Yen

The Bank of Japan releases the minutes of the Policy Board’s meeting at least a month after the actual meeting has happened. Since most of that information is well anticipated, traders tend to focus on clues that could suggest future interest rate changes. For example, if the minutes state that a rise in housing prices has accelerated during the period under review, traders and analysts will closely monitor the sector to gauge the likelihood of a future rate hike. Since the future course of interest rates is usually more important than the current rate, a hawkish outlook is considered to be positive for currency

 Understanding BoJ Monetary Policy Meetings and Minutes

The Bank of Japan Policy Board meets once a month for two days to review economic developments inside and outside of the country. The Policy Board is the bank’s highest decision-making body and implements monetary policy with the aim of maintaining price stability, while supporting growth and employment. The bank publishes minutes of the meeting that provide in-depth insight into the actual monetary policy decision making process.