BoJ Keeps Policy Unchanged

BOJ left its monetary stimulus program unchanged even as it trimmed its inflation forecasts.

BOJ left its monetary stimulus program unchanged even as it trimmed its inflation forecasts.

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The Bank will apply a negative interest rate of minus 0.1 percent to the Policy-Rate Balances in current accounts held by financial institutions at the Bank.

The Bank will purchase Japanese government bonds (JGBs) so that 10-year JGB yields will remain at around zero percent.

The Bank decided, by an 8-1 majority vote,

With a view to reinforcing the inflation-overshooting commitment, Mr. G. Kataoka dissented from the decision, considering that, if there was a delay in the timing of achieving the price stability target due to domestic factors, the Bank should take additional easing measures and that it was necessary to include that in the text.

In a report accompanying the monetary policy statement, the BOJ said it is maintaining its forecast for inflation to hit 2% in the fiscal year 2019/2020 but now expects core consumer prices to grow 0.8% in the fiscal year 2017/2018, lower than the previous projection of 1.1%.

Source: Bank of Japan

 

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