No Surprises From the Bank of Japan
The Bank of Japan retained all parameters of the stimulating programs without changes. The target yield of 10-year government bonds in Japan was left at about zero, and the interest rate on commercial banks' deposits was maintained at -0.1%. Thus, the parameters of the monetary policy of the Bank of Japan have not changed for a year and a half. The Japanese Central Bank also left the volume of the asset repurchase program unchanged at about 80 trillion yen ($705 billion) per year. It was Governor Haruhiko Kuroda’s final policy meeting before his new term begins next month.
Representatives of the Bank of Japan confirmed the forecast to achieve the target inflation rate of 2% per annum by the end of March 2020, although many private-sector economists consider such estimates unrealistic. Core inflation, which excludes fresh food, was 0.9% in January.
The Bank of Japan once again noted that Japan's economy is growing moderately, and also said that foreign housekeepers "have generally continued to grow steadily." The central bank also said that investment in the housing market has weakened somewhat, although it previously stated that investments in the housing market are more or less do not change.