BOJ Keeps Intact Easing Policy, Cuts GDP, Inflation Forecasts

Economy Politics

Tokyo, Oct. 31 (Jiji Press)--The Bank of Japan decided to keep its current monetary easing policy unchanged while lowering its Japanese gross domestic product and inflation forecasts for fiscal 2018, at a two-day policy review that ended on Wednesday.

The BOJ said in a policy statement that it will continue to impose a minus 0.1 pct interest rate on part of financial institutions' current-account deposits at the central bank and purchase long-term government bonds to guide the benchmark 10-year yield to around zero pct.

In a quarterly economic and price outlook report also released following the Policy Board meeting, the median Japan GDP growth forecast for fiscal 2018 among the board's members came to 1.4 pct, compared with 1.5 pct in the previous July report.

The country's core consumer price index is now projected to rise 0.9 pct in fiscal 2018, against the previously estimated increase of 1.1 pct.

The central bank said in the report that the Japanese economy is "expanding moderately," with the core CPI growth rate "likely to increase gradually" toward its target of 2 pct.

[Copyright The Jiji Press, Ltd.]

Jiji Press