Japan's BOJ retains ultra-loose policy, sees 1.9% core-core inflation

23 Jan '24

1 min read

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The Bank of Japan has decided to keep interest rates at minus 0.1 per cent, and continued with its yield curve control policy that keeps the upper limit for 10-year government bond yield at 1 per cent as a reference.
It forecast core-core inflation at 1.9 per cent.
The deadline for Fund-Provisioning Measure loan disbursement was extended to stimulate lending.

At the conclusion of its two-day monetary policy board meeting today, the Bank of Japan (BOJ) decided to keep interest rates at minus 0.1 per cent, and continued with its yield curve control policy that keeps the upper limit for 10-year government bond yield at 1 per cent as a reference.

It retained its ultra-loose monetary policy at its first meeting this year.

“We were able to confirm that the economy is moving in line with our projections on inflation,” BOJ governor Kazuo Ueda told a press conference.

“Our core-core inflation forecast is at 1.9 per cent, very close to our 2 per cent target. This was the case in October but it happened again this time, after close scrutiny….. But it’s hard to quantify how close we’ve come,” he was quoted as saying by global news wires. The ‘core-core inflation’ in Japan excludes growth in food and energy prices.

The central bank also decided to extend by a year the deadline for loan disbursement under the Fund-Provisioning Measure to stimulate bank lending.

Japan’s core consumer price index slowed to 2.3 per cent in December.

ALCHEMPro News Desk (DS)

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