Monetary Policy of Bank of Japan Remained Unchanged
The Bank of Japan has kept monetary policy unchanged. As expected, the interest rate on deposits of commercial banks was maintained at -0.1%. The target yield of 10-year government bonds of Japan was left at about 0%. Volumes of stimulating the economy also did not change. The regulator will continue to purchase assets for 80 trillion yen ($707.2 billion) per year.
According to the updated forecasts of the Bank of Japan, consumer prices in the country in the 2017 financial year ending March 31, 2018, will grow by 0.8%, and not by 1.1%, as expected in July. The key inflation indicator for 2018 has been reduced from 1.5% to 1.4%. The forecast for 2019 is kept at 1.8%.
While inflation in Japan remains well below the 2% target, the country's economy is on its way to the longest growth in 16 years, and the shares are at their peak in two decades.