BOJ keeps its monetary policy unchanged

31 Oct 2019 10:35 AM

The Bank of Japan kept its current monetary policy unchanged as expected by a 7-2 vote at its October 31 meeting.
• Interest has been kept in negative range at -0.10%.
• The Bank still controls the 10-year yield curve at zero levels but may change within this range up and down depending on economic activity.
• The bank maintained its government bond purchase program at an annual pace of 80 trillion yen.
 € البنك The bank kept the program to buy ETFs and REITs at 6 trillion and 90 billion yen.
• For individual and corporate bonds, the bank will hold their outstanding amounts at around 2.2 trillion yen and about 3.2 trillion yen respectively.
• The Bank will continue its current monetary policy until the inflation target of 2% is reached for as long as possible.
• The Bank will take appropriate measures if circumstances so require.
• The Bank will take into account developments in economic activity and financial conditions.
• There are still negative risks to economic activity.
• The Bank will not hesitate to take further expansionary measures if the economy loses growth momentum.
• Developed economies are still experiencing a significant slowdown.
• The output gap shrinks temporarily on the positive side.
• The output gap is expected to continue as the economy continues to expand.
As for foreign economies, the timing of the recovery is likely to be delayed longer than expected, mainly due to the long-standing US-China trade friction.
• We expect Japan's economy to grow temporarily at a rapid pace.
• Inflation expectations have not changed in the medium and long term.
• Investors remained concerned about the trade war in general.
• Markets have been quiet recently.
• Oil markets and global markets in general need to be closely monitored because of their impact on prices.