The Bank of Japan (BoJ) kept its current expansionary monetary policy unchanged at its meeting in March. The most important points in the statement of monetary policy as follows:
- Bank members decided by majority vote to keep the current monetary policy unchanged.
- Interest will be kept in negative range at -0.10%.
- The bank will buy government 10 years bonds while keeping yields at zero levels.
- The bank will continue to buy government bonds at an annual rate of 80 trillion yen to meet the long-term interest rate target.
- The Bank will continue to buy ETFs and real estate investment funds at an annual rate of $ 6 trillion and $ 90 billion, respectively.
- The bank will keep the volume of purchases of securities and corporate bonds at 2.2 trillion and 3.2 trillion, respectively.
- Japan's economy continues to recover at a moderate pace.
- The developed economies are experiencing significant improvement.
- Fixed investments continue to rebound with support from increased corporate profits and improved confidence in the business sector.
- Private consumption is improving at a moderate pace.
- Employment rates improved at a steady pace.
- Investment in the housing sector is weak.
- Inflation has stabilized on an annualized basis near 1%.
- Inflation expectations have not changed.
- Domestic demand is expected to see further improvement.
- Exports are expected to see further growth.
- There are many risks facing the economy represented in; Economic policies in the United States, their impact on global financial markets, developments in emerging markets and commodity exporting countries, Britain's exit negotiations from the EU and their implications, and geopolitical risks.
- The Bank will continue its current policy for as long as possible to ensure inflation rises to 2%.
- Is ready to take all necessary measures to support rising inflation.
- We monitor market movements closely.
