Monetary Policy of Bank of Japan Remained Unchanged

Forex News

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.