In a move that surprised no one, the BoJ left their monetary policy unchanged unhinged. The policy statement still reflects the looney tunes, magical thinking that has always epitomized their decisions: they’ll raise rates when inflation reaches 2% – even though inflation is well above 2% and has been for over a year. 
Annualizing the past quarter, CPI is running at 5.4%. Yet, the BoJ is holding short term rates at -0.10% and the 10Y at 0%. Ultra-low interest rates have exacerbated the inflation problem for consumers, as the yen continues to hover near 30+ year lows – driving food and energy prices even higher.
However, increasingly squeezed consumers remain at the bottom of the BoJ’s priority list, along with Debt:GDP – currently around 255%. At the top of the list: the Nikkei 225 stock index – hovering near all-time highs.
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