The governor of the Bank of Japan (BOJ), Kazuo, addresses a press conference on Thursday, explaining the bank’s decision to maintain the interest rate at 0.50% per second consecutive meeting.
Additional quotes
- Uncertainty for commercial policies increased dramatically.
- Report prepared based on the assumption that the interruption of the global supply chain would be avoided.
- Japan’s economy is recovering moderately, although some weak movements are observed.
- Japan’s economic growth will probably be moderated.
- Due attention should be given to financial and foreign exchange markets, and the impact on Japan’s economy and prices.
- The box is expected to continue increasing rates if the economy and prices move in line with the projections.
- To judge whether the perspective will be achieved without any prejudice.
- The commercial policies announced in each region will probably press the economies down.
- The underlying inflation is expected to cool due to tariffs and slow global growth.
- Economic and pricing projections could change dramatically depending on how countries handle US tariffs.
- The virtuous wage and prices cycle will continue due to the continuous shortage of labor.
- The perspective is not as true as it was before.
- The moment of underlying inflation to achieve the 2% objective will be delayed a bit.
- Difficulty judging when it will be likely to achieve the objective of underlying inflation, it will be flexible in the policy response.
- If there is a great change in tariff policy, that would affect the monetary policy perspective.
- The economy is approximately on the way until now.
history in development …
Market reaction
USD/JPY It remains strongly up after these comments. The pair was last operating by 0.98% higher on the day about 144.30.
Japan Faqs Bank
The Bank of Japan (BOJ) is the Japanese Central Bank, which sets the country’s monetary policy. Its mandate is to issue tickets and carry out monetary and foreign exchange control to guarantee the stability of prices, which means an inflation objective around 2%.
The Bank of Japan has embarked on an ultralaxa monetary policy since 2013 in order to stimulate the economy and feed inflation in the middle of a low inflation environment. The bank’s policy is based on the Quantitative and Qualitative Easing (QQE), or ticket printing to buy assets such as state or business bonds to provide liquidity. In 2016, the Bank redoubled its strategy and relaxed even more policy by introducing negative interest rates and then directly controlling the performance of its state bonds to 10 years.
The massive stimulus of the Bank of Japan has caused the depreciation of the Yen in front of its main monetary peers. This process has been more recently exacerbated due to a growing divergence of policies between the Bank of Japan and other main central banks, which have chosen to abruptly increase interest rates to combat inflation levels that have been in historical maximums. Japan Bank’s policy to maintain low types has caused an increase in differential with other currencies, dragging the value of YEN.
The weakness of the YEN and the rebound in world energy prices have caused an increase in Japanese inflation, which has exceeded the 2% objective set by the Bank of Japan. Even so, the Bank of Japan judges that the sustainable and stable achievement of the 2%objective is not yet glimpsed, so an abrupt change of current monetary policy seems unlikely.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
