Japan’s unemployment rate dropped for the second month by -0.1% to 2.3% in September, better than expectation of 2.4%. That’s also just 0.1% above May’s low at 2.2%. Unemployment rate has been in steady decline in recent years.
BoJ monetary policy meeting starts today. It’s widely expected that the central bank will stand pat in the announcement tomorrow. Interest rate will be held unchanged at -0.1%. A major focus is the new economic forecasts but a majority of economists expect them to be largely unchanged.
A major change in BoJ’s communications this year was the explicit allowance of 10 year JGB yield to move in a range of -0.1% to 0.1%. And, JGB is has already moved more than that. Hence, there is possibly unnecessary for BoJ to widen that band further.
