At its 10-11 July monetary policy meeting, the Bank of Japan (BoJ) decided to leave the monetary policy unchanged. The Bank also unanimously decided to conduct money market operations so that the monetary base - its main policy instrument - will increase at an annual pace of between JPY 60 and 70 trillion (approximately USD 604 and 704 billion). This decision was in line with market expectations. In its accompanying statement, the Central Bank upgraded its view on the economy and now affirms that the economy "is starting to recover moderately." The BoJ stated that overseas economies are gradually picking up, thereby supporting demand for Japanese goods, while domestic demand is also improving. Regarding price developments, the Bank affirmed that, although inflation is now close to zero, some indicators point to a rise in inflation expectations. All FocusEconomics Consensus Forecasts panellists expect the collateralized overnight call rate to remain unchanged at between 0% and 0.1% both this year and next.
Bank of Japan upbeat on economic recovery
July 10, 2013
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Note: Quarter-on-quarter seasonally adjusted annualized changes and annual variation of GDP in %.
Source: Cabinet Office (CO) and FocusEconomics Consensus Forecast.
Japan Economic News
October 12, 2016
Core machinery orders (a leading indicator of capital spending over a three- to six-month period) declined for the first time in three months in August.
October 4, 2016
Consumer sentiment rose from August’s 42.0 to 43.0 in September.
October 3, 2016
According to the Bank of Japan’s quarterly TANKAN business survey, sentiment among large manufacturers was stable at 6 in Q3.
September 30, 2016
In August, the core consumer price index was flat compared to the previous month, which was above the 0.2% decline in July.
September 30, 2016
In August, industrial production expanded 1.5% over the previous month in seasonally-adjusted terms, which contrasted July’s 0.4% decrease (previously reported: 0.0% month-on-month).