At its 20-21 November monetary policy meeting, the Bank of Japan (BoJ) decided to keep its stance on monetary policy unchanged. The Bank also unanimously decided to continue implementing money market operations so that the monetary base - its main policy instrument - would increase at an annual pace of between JPY 60 and 70 trillion (approximately USD 608 and 710 billion). This decision, which was in line with market expectations, aims at achieving the price stability target of 2.0%. In its accompanying statement, the Central Bank stated that the economy, "has been recovering moderately," and that it is expected to continue to do so. The BoJ underlined three potential risks to the Bank's outlook projection: uncertainty regarding the European debt crisis; developments in the emerging and commodity-exporting economies; and the pace of recovery in the United States. In terms of price developments, the Bank stated that inflation expectations, "appear to be rising on the whole," and that CPI, "is likely to rise gradually," going forward. The next monetary policy meeting is scheduled for 19-20 December. All of the FocusEconomics Consensus Forecasts panelists expect the collateralized overnight call rate to remain unchanged at between 0.0% and 0.1% both this year and next.
Japan Monetary Policy
Bank of Japan keeps monetary policy steady
November 21, 2013
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Japan Monetary Policy Chart
Note: Collateralized overnight call rate in %.
Source: Bank of Japan (BoJ).
Japan Economic News
October 24, 2016
The Nikkei Flash Manufacturing Purchasing Managers’ Index (PMI) rose from September’s revised 50.4 (previously reported: 50.3) to 51.7 in October.
October 24, 2016
In September, nominal exports valued in yen declined 6.9% from the same month last year, which followed August’s 9.6% decline.
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.