The BoJ does not change its expansionary policy. After all, why should it?
The Bank of Japan (BoJ) kept its key short-term interest rate at -0.1% and 10-year bond yields at around 0% at its January meeting by unanimous vote. The central bank also maintained its 0.5% ceiling on bond purchase rates, defying market speculation and signaling that policy makers are not looking to loosen their grip on bond yields after the bank unexpectedly changed the yield curve control range in December.
Meanwhile, in a quarterly outlook report, the board trimmed its 2022 GDP growth forecast slightly to 1.9% from 2.0%, citing slowing overseas economies and high prices. of raw materials. For fiscal 2023, the bank also cut its GDP forecast to 1.7% from 1.9%. CPI readings have remained roughly unchanged, hovering around 3% in the year 2022 and 1.6% in the following year, not far from what has been seen in the past. The BoJ reiterated that it will take further easing measures if needed, expecting short- and long-term interest rates to remain at or below current levels.
Meanwhile, this is the interest rate for the last 10 years. the only thing that has changed is the tolerance, from 0.25 to 0.50% of the BoJ before intervening in the purchases of securities. The bank intervenes only when the 10-year state rate exceeds the pre-established rate of 0.2% by 0.5%.
And anyway, as pointed out earlier, inflation appears to have peaked
Japanese monetary policy works better than the European one. Why should he change it?
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The article The BoJ does not change its expansionary policy. After all, why should it? comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-boj-non-cambia-la-sua-politica-espansiva-del-resto-perche-dovrebbe/ on Wed, 18 Jan 2023 09:06:17 +0000.