Bank Of Japan Keeps Policy Unchanged
19 Settembre 2019 - 2:00AM
RTTF2
The Bank of Japan kept its monetary policy unchanged as widely
expected on Thursday, after the U.S. Federal Reserve resorted to
further easing.
The Policy Board of the BoJ voted 7-2 to maintain interest rate
at -0.1 percent on current accounts that financial institutions
maintain at the bank.
The bank said it will purchase government bonds so that the
yield of 10-year JGBs will remain at around zero percent.
Further, the bank will purchase JGBs in a flexible manner so
that their outstanding amount will increase at an annual pace of
about JPY 80 trillion.
The bank said it will reexamine economic and price developments
at the next monetary policy meeting in October, when it updates the
outlook for economic activity and prices. The bank repeated that it
will not hesitate to take additional easing measures if needed.
It is worth recalling that the Bank made similar pledges in 2016
amid concerns over China's economy, but never followed through on
them, Marcel Thieliant, an economist at Capital Economics,
said.
Since then, concerns over the impact of looser policy on the
health of banks have intensified. As such, the BoJ will keep its
interest rate targets unchanged over the coming year, the economist
noted.
Regarding economic outlook, the BoJ said Japan's economy is
likely to continue on a moderate expanding trend, despite being
affected by the slowdown in overseas economies for the time
being.
Further, the bank said it is necessary to pay closer attention
to the possibility of losing momentum towards achieving the price
stability target.
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