Wednesday, 23 January 2019 10:26 WIB |
FISCAL & MONETARY |Bank of JapanBOJ
The Bank of Japan left its policy unchanged as it cut its inflation outlook once again, underscoring how far away its price target is and how few options the central bank has for drawing closer.
The BOJ maintained its yield curve-control program and asset purchases, the central bank said in a statement Wednesday, a result predicted by all but one of 50 economists surveyed by Bloomberg. The bank lowered its inflation forecast for a fourth consecutive time in its quarterly outlook report.
With the European Central Bank meeting on Thursday and the Federal Reserve next week, the gap between the BOJ and its global peers keeps widening. While the Fed may hit pause soon, both it and ECB are seeking to return to pre-crisis policies, giving them more room to respond in the event of another shock or downturn.
In its outlook report, the BOJ cut its inflation forecast for the fiscal year starting in April to 0.9 percent from 1.4 percent.
It raised its projection for economic growth for next fiscal year to 0.9 percent. The International Monetary Fund said this week its sees the Japanese economy growing faster than previously expected, citing additional fiscal support.
Source : Bloomberg