The Bank of Japan maintains its rates at -0.1% and announces that they will remain so and even lower in the short term

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The members of the council of Bank of Japan (BoJ) they decided on Thursday not to make changes in the configuration of their monetary policy, keeping interest rates at -0.1% and the 10-year JGB yield target at 0.00%. The announcement comes after the central bank wrapped up its two-day policy review meeting.

BoJ Statement

The Bank of Japan made the decision on the interest rate curve control policy unanimously.

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The entity does not change its guidance on interest rates, and states that expects short and long-term rates to remain at “current or lower” levels.

The BoJ leaves its guidance on policy skew unchanged, says it will unhesitatingly take additional easing measures as needed, with an eye on the pandemic’s impact on the economy.

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The entity emphasizes that it is necessary to be attentive to movements in the financial and currency markets and their impact on the economy and prices in Japan.

Core Japanese consumer inflation likely to accelerate towards the end of the year by rising prices for energy, food and durable goods.

The rise in core inflation is likely to slow thereafter.

Upward price pressure in Japan is likely to increase as a trend.

The Japanese economy is recovering despite rising commodity prices.

The country’s economy will recover as the effects of the pandemic and supply constraints ease.

The Bank of Japan has decided to eliminate the pandemic financing program and move to a funding stage that meets a wide range of financing needs.

The BoJ will not set any limits on the amount of provision of funds in the framework of market operations directed to a wide range of companies against a common guarantee.

Source: Fx Street

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