BOJ Keeps Monetary Policy Unchanged

Politics

Tokyo, Oct. 29 (Jiji Press)--The Bank of Japan decided to keep its current monetary easing policy unchanged at a two-day policy review that ended Thursday.

The BOJ Policy Board voted eight to one to keep its short-term policy interest rate at minus 0.1 pct and guide 10-year government bond yields around zero pct.

In a quarterly report released following the policy meeting, the BOJ revised down its fiscal 2020 growth rate projections for Japan's real gross domestic product and the country's core consumer price index. In the year that started in April, the GDP is now forecast to fall 5.5 pct and the core CPI, excluding fresh food prices, is projected to decline 0.6 pct.

The central bank said in the latest Outlook for Economic Activity and Prices report that the Japanese economy "has picked up with economic activity resuming, although it has remained in a severe situation" due to the impact of the new coronavirus epidemic at home and abroad.

Looking ahead, the BOJ said the Japanese economy is likely to follow an improving trend, but "the pace of improvement is expected to be only moderate while vigilance against COVID-19 continues."

[Copyright The Jiji Press, Ltd.]

Jiji Press