Every month the Bank of Japan releases their report covering trends in the Japanese economy and relevant international developments. The report summarizes recent economic indicators and gives the Bank's official position on Japanese economic growth. Because the BOJ sets monetary policy, any insight into the conclusions and assumptions the Bank is operating under can be helpful in predicting future interest rate actions.

Markets tend to focus on the key points of the report and how they may lead to future interest rate changes. For example if the report cites worries over deflation and suggests that lackluster demand has stymied growth, market participants will be more inclined to monitor leading inflation and consumption indicators in order to gauge the likelihood of rate increases in the future. Additionally, markets focus on how the language in the report might suggest future interest rate changes. If the Bank of Japan is cautious in its tone about the inflationary outlook for the economy (characterized as "Hawkish"), then the market sees a higher likelihood of future rate increases. If the Bank is optimistic ("Dovish") or concerned with deflation, it suggests that future rate increases are less likely.

Relevance :Tends to move markets on release
Release schedule : 6:00 (GMT); in the middle of the month
Revisions schedule : None
Source of report : Bank of Japan
Web Address : http://www.boj.or.jp/en/
Address of release : http://www.boj.or.jp/en/theme/seisaku/handan/gp/index.htm
AKA : Monthly Report of Recent Economic and Financial Developments