BoJ Keeps Policy Unchanged

Bank of Japan maintained its monetary stimulus and a new dovish member voted against the decision, he was opposed to the CPI outlook.

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

kuroda1The 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 of Japan expects Japan’s economy “likely to continue its moderate expansion,” with domestic demand “likely to follow an uptrend,” and exports are expected to “continue their moderate increasing trend” on the back of the improvement in overseas economies.

[DOVE] Mr. G. Kataoka opposed the description on the outlook for the CPI, considering that, although the year-on-year rate of change in the CPI was likely to increase for the time being reflecting developments incrude oil prices and foreign exchange rates, the possibility of the rate of change increasing toward 2 percent from 2018 onward was low at this point.


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