In its latest decision, members of the Bank of Japan voted 7 to 2 to maintain interest rates at -0.10%. With inflation and consumption remaining in contractionary territory, the Central Bank opted to implement no new policy measures. At the same time, a growing component of their policy includes stabilizing the bond market to meet certain targets as the impact of negative interest rates spreads. Inflation has been the predominant problem facing the Central Bank, with data last week showing the economy remains firmly in an environment of falling prices. Reflecting this reality was the decision to revise 2017 inflation forecasts downwards from 1.70% to 1.50%. Hitting the government’s 2.00% target will be pushed back to 2018 as a result. In the meantime, the Yen has weakened modestly versus peers, with EURJPY climbing as high as 115.468.