BOJ Cuts Views on Exports, Production; Policy Unchanged

Politics

Tokyo, March 15 (Jiji Press)--The Bank of Japan on Friday lowered its assessments of the country's exports and production, amid growing uncertainties about overseas economies partly reflecting the U.S.-China trade spat.

At its two-day Policy Board meeting through the day, the BOJ kept its monetary policy unchanged. The board voted seven to two to maintain the yield curve control regime of guiding 10-year Japanese government bond yields to around zero pct and applying a negative interest rate of 0.1 pct on part of commercial financial institutions' current account deposits at the central bank.

In a statement to announce the monetary policy decision, the BOJ said that the Japanese economy "is expanding moderately" with a virtuous cycle from income to spending operating, the same view as that adopted at its previous monetary policy meeting in late January.

This time, however, the BOJ added that exports and production "have been affected by the slowdown in overseas economies."

Exports "have shown some weakness recently," while production "has been on a moderate increasing trend although it has shown some weakness recently," it said.

[Copyright The Jiji Press, Ltd.]

Jiji Press