BOJ keeps monetary policy unchanged

The Bank of Japan (BOJ) announced on Thursday that, by a majority vote of 8-1, it has set a guideline for money market operations to maintain the overnight call rate at approximately 0.25 per cent.

Inflation has been in the range of 2.0-2.5 per cent recently, driven by moderate increases in services prices due to factors like wage hikes. Inflation expectations have also risen moderately, according to BOJ’s statement.

Japan’s economy is expected to continue growing above its potential, supported by moderate global economic growth and a strengthening cycle of income leading to spending, aided by favourable financial conditions.

The central bank reviewed the impact of unconventional monetary policy on Japan’s economy over the past 25 years and discussed its implications for future monetary policy, its statement showed.

Attribution: The Bank of Japan report

Subediting: M. S. Salama