BOJ maintains its policy setting unchanged

Bank of Japan policy meeting over – statement out now

  • maintains short-term interest rate target at -0.1%
  • maintains 10-year jgb yield target around 0%
  • Japan’s economy is in increasingly severe state
  • economy likely to remain in severe state for time being due to coronavirus pandemic
  • economy likely improve as fallout from coronavirus pandemic subsides
  • will take additional monetary easing steps without hesitation if needed with close eye on impact of coronavirus pandemic
  • size of money pumped out via market operations, lending facilities to combat pandemic likely to increase from current 75 trln yen
  • ┬ásize of money pumped out via market operations, lending facilities to combat pandemic likely to increase to around 110 trln yen
  • says exports, output falling sharply
  • says pace of increase in capex is clearly slowing
  • says some weak movements seen in job, income conditions
  • says consumption falling sharply
  • says consumer inflation hovering around 0%

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