• Monetary policy of the Bank of Japan: The central bank maintains a short-term interest rate target of -0.1%

Market news

23 January 2019

Monetary policy of the Bank of Japan: The central bank maintains a short-term interest rate target of -0.1%

  • supports JGB's 10-year Target Yield Near Zero

  • leaves unchanged the obligation to buy JGBs in a flexible way, so its reserves increase at an annual rate of about Y80 trillion

  • leaves unchanged rate recommendations, says will keep current extremely low rates for a long period of time

  • the decision to control the yield curve is made by 7-2 votes, members of the board of directors. Harada, Kataoka disagree

  • Bank of Japan decides to extend the March term for a credit scheme aimed at encouraging financial institutions to increase lending

  • Extend the loan scheme for one year

  • Japan's economy is expected to continue to expand until 2020.

  • the economy’s momentum for achieving the inflation target is steady but lacks strength

  • risks to inflation forecast skewed down

  • risks to economic outlook skewed down

  • mid-term and long-term inflation expectations have remained more or less unchanged.

  • decides to extend the loan scheme to support the growth fundament for another year

  • expect consumer prices to rise gradually to 2 percent

  • we expect foreign economies to continue their steady growth, although they should pay attention to trade tensions between the USA and China and various recent steps

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