BoJ softens calendar-based commitment to inflation

BoJ extended the timeframe for achieving 2% inflation by another six months to "around H2 FY16" and cut its core CPI forecast while keeping its monetary policy unchanged.  Governor Kuroda emphasized that an upward momentum of the BoJ's new measure of CPI supports solid inflation trend and revealed his preference for a "balanced" inflation, where "not only inflation rises, but also wages and corporate earnings need to increase." 

"We no longer expect additional easing and would expect further easing only as a reaction to risk events such as a sharp JPY appreciation, a worsening in inflation outlook, some political pressure, or a significant deterioration in the external environment", says Barclays.