Japan Monetary Policy


Japan: Central Bank holds off new stimulus

November 20, 2012

At its 19-20 November monetary policy meeting, the Bank of Japan (BoJ) decided to maintain the Asset Purchase Program unchanged, in a decision widely expected by the market. The Bank also decided to leave the collateralized overnight call rate unchanged at between 0 to 0.1%, in line with market expectations. The BoJ considereded that the economy will remain "relatively weak for the time being", thereby raising expectations of further action in the next monetary policy meeting scheduled for 19 December. Previously, at its 30 October monetary policy meeting, the Bank of Japan (BoJ) unanimously decided to increase the total size of the Asset Purchase Program by JPY 11 trillion (USD 139 billion) to JPY 91 trillion (USD 1.1 trillion), in a decision expected by market analysts. Specifically, the BoJ boosted both the acquisition of treasury discount bills and the purchase of government bonds by JPY 5 trillion each, while marginally increasing the rest of the program. The move represents the second increase in the Bank's financial asset-buying program following the additional JPY 10 trillion added in the 18-19 September meeting. Moreover, the BoJ introduced the "Stimulating Bank Lending Facility", which will offer unlimited loans of up to 4 years to commercial banks at the uncollateralized overnight rate.


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Japan Economic News

  • Japan: Machinery orders decline in May

    July 11, 2018

    Although core machinery orders—a leading indicator of capital spending over a three- to six-month period—contracted in May, the fall was weaker-than-expected, suggesting that capital expenditure will gain steam further down the road.

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  • Japan: Business confidence weakens in Q2

    July 2, 2018

    According to the Bank of Japan’s quarterly Tankan business survey, sentiment among large manufacturers fell in the second quarter of 2018, suggesting economic momentum has yet to gain traction following a weak first quarter.

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  • Japan: Consumer confidence declines marginally in June

    June 29, 2018

    Consumer sentiment inched down to 43.7 in June from 43.8 in May, coming in just below market expectations of a stable print.

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  • Japan: Industrial production falls in May

    June 29, 2018

    Industrial production contracted 0.2% on a month-on-month and seasonally-adjusted basis in May, contrasting April’s revised 0.5% increase (previously reported: +0.3% month-on-month).

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  • Japan: Core inflation stable in May

    June 22, 2018

    The core consumer price index rose 0.1% in month-on-month seasonally-adjusted terms in May, reversing April’s 0.1% fall. Core inflation was steady at 0.7% in May, unchanged from April and in line with market expectations.

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