Milan, 30 Oct. (LaPresse) – The Bank of Japan (BOJ) has kept its key interest rate unchanged at 1.25 per cent and announced today that core inflation has essentially reached the 2 per cent target, almost 14 years after it was set. This is according to the latest quarterly report on the economic outlook, published following a two-day monetary policy meeting, as reported by Kyodo News. The Bank of Japan stated that it will continue to raise the key interest rate and adjust the degree of monetary accommodation, given that core inflation stands at a level ‘broadly consistent with the 2 per cent price stability target and financial conditions have remained accommodative’. The BoJ also decided to accelerate the sale of the ETFs (exchange-traded funds) it holds in its portfolio. For the current financial year, which ends in March, the Bank of Japan forecasts growth in the Japanese economy of 0.7 per cent, up from its previous estimate of 0.6 per cent. The forecast for consumer price inflation (excluding the most volatile components), however, was confirmed at 2.5 per cent.
Japan: Central Bank leaves interest rates at 1.25 per cent; inflation target met
Milan, 30 Oct. (LaPresse) – The Bank of Japan (BOJ) has kept its key interest rate unchanged at 1.25 per cent and announced today that core inflation has essentially reached the 2 per cent target, almost 14 years after it was set. This is according to the latest quarterly report on the economic outlook, published following a two-day monetary policy meeting, as reported by Kyodo News. The Bank of Japan stated that it will continue to raise the key interest rate and adjust the degree of monetary accommodation, given that core inflation stands at a level ‘broadly consistent with the 2 per cent price stability target and financial conditions have remained accommodative’. The BoJ also decided to accelerate the sale of the ETFs (exchange-traded funds) it holds in its portfolio. For the current financial year, which ends in March, the Bank of Japan forecasts growth in the Japanese economy of 0.7 per cent, up from its previous estimate of 0.6 per cent. The forecast for consumer price inflation (excluding the most volatile components), however, was confirmed at 2.5 per cent.