BOJ stands pat on policy, indicates more stimulus measures in pipeline
TOKYO, Nov 1 (XINHUA/APP):The Bank of Japan (BOJ) on Thursday opted to keep its monetary policy unchanged at the conclusion of a two-day policy setting meeting, though the central bank underscored its stance that it stood ready to cut rates if necessary.
In a statement released after the meeting at which it decided to keep its ultra-easy policy unchanged so as to keep its inflation target feasible.
The BOJ “expects short- and long-term interest rates to remain at their present or lower levels as long as there is a possibility of losing momentum toward the 2-percent inflation goal,” Japan’s central bank said.
Further adding to speculation the central bank is primed and will follow suit with other central banks in cutting their rates, the BOJ downgraded its growth and inflation forecasts in the years to come, indicating more stimulus measures could be on the way.
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In terms of the bank’s price outlook, the BOJ cut its inflation forecast for fiscal 2019 through March to 0.7 percent from 1.0 percent forecast in July.
The central bank also lowered forecasts for fiscal 2020 to 1.1 percent and 2021 to 1.5 percent, from previous forecasts of 1.3 percent and 1.6 percent, respectively.
At the conclusion of its two-day meeting, the BOJ Policy Board voted to keep short-term interest rates at minus 0.1 percent while guiding long-term rates around zero percent. The central bank also opted to maintain its massive asset purchasing program.
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