The Bank of Japan (BoJ) has decided to leave its interest rates unchanged at -0.1% during its October meeting, as expected. The entity has not changed its main rates for more than six years, specifically since January 2016. The 10-year JGB yield target has not changed from 0.0% either.
BoJ Statement
The Bank of Japan makes the decision on the Yield Curve Control, the so-called YCC, unanimously, with the aim of achieving the 2% price stability target.
The entity does not change its guidance on interest rates and states that expects short-term and long-term rates to remain at or below current levels.
The BoJ does not change its guidance on monetary policy skew, stating that it will unhesitatingly adopt additional easing measures when necessary, taking into account the impact of the pandemic on the economy.
You have to pay due attention to developments in financial and foreign exchange markets and their impact on Japan’s economy and prices.
In terms of risks, the evolution of exchange rates and international prices of raw materials are considered a risk for prices.
In the baseline scenario, global inflation rates are expected to decline gradually and overseas economies are expected to continue to grow moderately.
Vigilance against spiraling wage prices has increased mainly in advanced economies.
There is concern in world financial and capital markets as to whether it is possible to simultaneously contain inflation and maintain economic growth.
Source: Fx Street
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