The guardian of the currency, named after its monetary policy meeting on Thursday for the first time, a specific time frame. Therefore, this guideline is intended to apply to “at least about the spring of 2020”.
Thus, the Bank’s commitment of Japan (BoJ) any longer to be a loose course as the European Central Bank, which wants to at least hold on until the end of the year at the low interest rates. Your penalty interest rate on deposits of commercial banks, the monetary authorities kept in Tokyo, as expected, at 0.1 percent. At the same time they repeated their promise to keep the yield on ten-year government bonds at zero percent.
Central Bank chief Haruhiko Kuroda said after the interest rate decision, possibly the loose line will still run through the spring of 2020. That would depend entirely from the data. The BoJ is on guard, particularly with a view to the consequences of the international trade dispute and the slowdown in the global economy.
The mood in the major industrial corporations in the far East of the country has deteriorated to the start of the year. In the end customs dispute between the United States and China, as well as the weaker global economy, especially the continuing role. The companies, in particular, a weaker demand for electrical parts, to feel cars and investment goods. The further economic prospects will be behavior evaluated.
The Bank of Japan has been trying for years, with value paper, the economic stimulus purchases to boost and improve the Inflation. A spiral of falling prices, falling wages and stock investments, the country was paralyzed for long time. The monetary authorities try, the inflation rate to two percent. Kuroda now had to admit once again that this will probably take longer than expected.
In the forecasts of the Central Bank is expected to be in April 2021, the beginning of the end of the financial year, an inflation rate of 1.6 percent. Finally, the inflation rate was, to the exclusion of more volatile food prices, however, is only half as high. “The BoJ is concerned that consumer prices will not rise even if the Overseas threats should subside,” says Economist Norio Miyagawa from the financial house Mizuho Securities. However, their means to hold, to be after years the flood of money is limited.