Bank of Japan Leaves Ultra-Easy Policy Unchanged; Yen Weakens

The Bank of Japan (BOJ) has maintained its policy rate at -0.1% and its JGB yield target at 0%. The BOJ's statement indicates a commitment to respond nimbly to economic conditions while keeping its economic assessment unchanged. The yen has surpassed the 148 barrier against the dollar, reflecting market reactions. The BOJ emphasizes the need to monitor FX developments and suggests that inflation may cool, despite current CPI figures. The focus remains on cost push inflation and the impact of import prices, which are showing signs of waning.

What are the implications of the BOJ's ETF purchases remaining unchanged?

What factors are influencing the BOJ's stance on inflation?