He Bank of Japan (BoJ) has left its monetary policy configuration unchanged after wrapping up their two-day meeting on Friday.
Central bank has left the key rate unchanged at -10bp, maintaining a 10-year JGB yield target of 0.00%.
The members of the board of the BoJ decided to extend the March 2021 deadline for the package of measures to ease corporate financing tensions by 6 months.
Statement summary:
An examination will be conducted on a more effective and sustainable monetary easing framework to achieve the price target.
It is not necessary to change the control framework of the yield curve.
The outcome of the multi-step review will be released at the monetary policy meeting in March next year.
A review of the operations of the financial aid program will be conducted.
The economy of Japan recovers, but the pace of recovery will be moderate.
Business financing will remain under pressure.
Will consider a further extension of the financial aid program if needed, depending on the impact of the pandemic.
The BoJ maintains the evaluation no change since october, says that Japan’s economy remains in a severe state but recovering.
Japan’s economy is likely to recover moderately as a trend.
The exports and industrial production have continued to increase.
Corporate earnings and business confidence have gradually improved.
He private consumption it has gradually recovered overall, but services such as food / beverage are at a low level.
The board member Kataoka objected to the decision as it was desirable to further strengthen monetary easing by lowering rates in the short and long term in part to encourage companies to make investments for the post-covid-19 era.
The IPC has been affected by the coronavirus; Inflation expectations have weakened a bit.
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