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BOJ cuts growth, price forecasts; keeps policy steady -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: This is a man looking at his phone while he waits in front of Tokyo’s Bank of Japan, Japan. REUTERS/Toru Hansai

TOKYO, Reuters – On Thursday the Bank of Japan maintained a steady monetary policy and lowered its inflation forecast for this year. This is a signal that it does not intend to follow other central banks when they prepare an exit strategy from their crisis-mode policies.

Although the nine-member board cut its growth forecast for this year, it maintained that they believed the third largest economy in the world was on track to moderate recovery.

In a quarterly report, the BOJ stated that “Japan’s economic outlook is improving but remains in an extremely difficult state”.

According to it, “Exports are decreasing due to shortages but they will continue to grow as a trend.”

The BOJ kept its target for short-term interest rates at -0.1%, and maintained that it would be around 0% for 10 year government bonds yields. This was widely anticipated.

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