TOKYO, Jan 18 ― The Bank of Japan (BoJ) today maintained ultra-low interest rates, including a bond yield cap it was struggling to defend, defying market expectations it would...
TOKYO, Jan 18 ― The Bank of Japan today maintained ultra-low interest rates, including a bond yield cap it was struggling to defend, defying market expectations it would phase out its massive stimulus programme in the wake of rising inflationary pressure.
The central bank also made no change to its guidance that allows the 10-year bond yield to move 50 basis points either side of its 0 per cent target. “By showing its resolve to use market tools more flexibly, the BoJ wanted to signal to markets it won't make big monetary policy changes under Governor Haruhiko Kuroda.”The decision follows the BoJ's surprise move last month to double the yield band, a tweak that analysts say has failed to correct market distortions caused by its heavy bond buying.
Kuroda has repeatedly said the BoJ was in no rush to dial back stimulus, let alone raise interest rates, until wages rise enough to boost household income and consumption, allowing firms to lift prices. But the inflation forecast for fiscal 2023 was maintained at 1.6 per cent, a sign the board is sticking to the view prices will moderate as the effect of past surges in raw material costs dissipate.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Economists tip Amamiya for next BoJ governorTOKYO: Bank of Japan (BoJ) deputy governor Masayoshi Amamiya, a close aide of incumbent chief Haruhiko Kuroda, is most likely to succeed him in April, according to two-thirds of economists in a Reuters poll.
Read more »