BOJ Keeps Policy Intact, Cuts Inflation Forecasts

Politics

Tokyo, Jan. 23 (Jiji Press)--The Bank of Japan on Wednesday left its ultraeasy monetary policy unchanged while lowering its inflation forecasts for fiscal 2018 to fiscal 2020.

The nine-member Policy Board decided by a vote of seven to two to continue guiding 10-year Japanese government bond yields to around zero pct and applying a minus 0.1 pct interest rate to part of financial institutions' current-account deposits at the BOJ.

The central bank made the decision at a two-day board meeting from Tuesday.

The BOJ also decided to extend its program to shore up bank lending to households and companies by one year from the end of March, seeing the need to continue the program in order to realize its 2 pct inflation target.

In a quarterly report released after the meeting, the BOJ said the country's core consumer price index is forecast to rise 0.9 pct in fiscal 2019 and 1.4 pct in fiscal 2020, down from the previously projected increases of 1.4 pct and 1.5 pct, respectively.

[Copyright The Jiji Press, Ltd.]

Jiji Press