Business and Economy
Bank of Japan continues to implement ultra-loose monetary policy
FILE: Bank of Japan headquarters in Tokyo, Japan. (Photo by Wikimedia, Public Domain)
ISTANBUL – Bank of Japan (BoJ) on Tuesday decided to continue its ultra-loose monetary policy by keeping interest rate at minus 0.1 percent.
It will purchase “a necessary amount of Japanese government bonds without setting an upper limit so that 10-year JGB yields will remain at around zero percent.”
Also, it will purchase exchange-traded funds and Japan real estate investment trusts as necessary with upper limits of about 12 trillion yen (USD81.3 billion) and about 180 billion yen (USD1.
2 billion), respectively.
The bank said it will continue monetary easing due to high uncertainties at home and abroad, and that economic activity and financial conditions would be closely monitored.
It also aims to achieve price stability at 2 percent inflation in a sustainable and manageable manner with the contribution of wage increases.
BoJ members’ expectation for the country’s growth dropped from 2 percent to 1.8 percent for 2023 while they kept the inflation forecast at 2.8 percent.
