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The Bank of Japan kept interest rates unchanged on Friday, as expected, and noted that while Japan's economy would continue to expand moderately, Japan was feeling the effects of a global slowdown.
The central bank of Japan has maintained its short-term interest rate target at less than 0.1% and has stated that it would maintain Japanese government bond purchases at 10%. years so that yields remain at around 0%. Ten of the 11 economists polled by Reuters predict that the BoJ will maintain rates at its March meeting.
The BoJ noted weak exports and recent weakness in industrial production. He said that the rate of change in consumer prices "should increase gradually to 2%.
The central bank is facing an increasingly difficult environment because of the slowdown in growth and its 2% inflation target "looks even less achievable," said the senior economist. ANZ, Tom Kenny, before the announcement of the policy.
"We believe that the tipping point must be close in terms of considering further easing monetary policy, changing its framework for easing or rethinking its inflation target," he said. said Mr. Kenny.
The slowdown in sales in China as a result of the trade war between the United States and China has weighed on the Japanese economy in recent months. The country's manufacturing industry contracted for the first time in almost three years in February, while machine orders also fell.
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