BOJ Vows to Ease Policy Further If Inflation Slows

Economy Politics

Tokyo, July 30 (Jiji Press)--The Bank of Japan on Tuesday clarified its intention to take further monetary easing steps if needed in a bid to achieve its 2 pct inflation target.

The BOJ "will not hesitate to take additional easing measures if there is a greater possibility that the momentum toward achieving the price stability target will be lost," the central bank said in a statement issued after its two-day Policy Board meeting through the day.

Previously, the central bank said that it would "make policy adjustments as appropriate," taking account of developments in economic activities and prices.

At the latest meeting, the board decided by a seven-to-two vote to leave its monetary policy unchanged while lowering its inflation forecasts for fiscal 2019 and fiscal 2020.

The BOJ will continue applying an interest rate of minus 0.1 pct on part of financial institutions' current account deposits at the central bank and guiding 10-year Japanese government bond yields to around zero pct.

[Copyright The Jiji Press, Ltd.]

Jiji Press