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BOJ stands pat after last month's surprise policy shift
The Bank of Japan kept its ultra-easy monetary policy unchanged on Wednesday, despite the bond market fallout from a surprise policy shift last month. After a two-day meeting, the BOJ's nine-member board maintained its yield curve control policy, keeping its target band for 10-year Japanese government bonds at between plus and minus 0.5%. The bank left short-term term interest rates at minus 0.1%. The no-change decision was widely expected as most economists saw that the central bank wanted time to assess the impact of its December decision, when it widened the yield target band from 25 basis points to 50 basis points.
https://asia.nikkei.com/Economy/BOJ-stands-pat-after-last-month-s-surprise-policy-shift
Bank of Japan-Monetary Policy January18th, 2023-changes
https://www.boj.or.jp/en/mopo/mpmdeci/mpr_2023/k230118a.pdf
They also continue buying J-REITS-propping the property market
Kuroda to attend Davos, depart shortly after closely-watched BOJ meeting
https://www.reuters.com/markets/asia/kuroda-attend-davos-depart-shortly-after-closely-watched-boj-meeting-2023-01-16/
BOJ Is Less Than A Year (33 weeks) Away From Running Out Of Bonds To Buy
>excerpt
Meanwhile, the absolutely horrific and frantic pace of recent JGB purchases — some 12t yen in a mere four days — exceeds any single month of buying to date. The central bank’s share of the market likely jumped a full percentage point in January to 53%, and the month is only half over. Hilariously, according to Garfield's calculations,if the BOJ keeps going like this, then it has some 33 weeks or so left until there are no JGBs left in private hands.
Assuming the government actually increases its borrowings, that would add a few more weeks, but the idea that the BOJ might buy the whole local bond market by the end of 2023 isn’t one policy makers would be especially eager to contemplate.
https://www.zerohedge.com/markets/boj-less-year-away-running-out-bonds-buy
One of the things that tends to be lost in this is that the BoJ is drastically reducing the amount of US Treasuries (Foreign Reserves listed in it's assets) to fund the purchase of it's own debt-this is why the Yen has increased in value so much since it's high in late Oct.-see cap#3 as it's balance sheet is not as high as it was in 2022 but the 10y JGB is also the highest it's been since 2014 for the fourth straight day-so Kuroda din't do nuffin and now heading to Davos
Key moments in BOJ's monetary policy
https://www.reuters.com/markets/asia/key-moments-bojs-monetary-policy-2023-01-18/
>>18155467, >>18155498 pb Economic Schedule for Week of January 15, 2023 >>18158920 pb