';
Views Article – Sharenet Wealth

Asia, Forex

BOJ keeps policy steady, warns of easing if price goal threatened

TOKYO, July 30 (Reuters) – The Bank of Japan kept its monetary settings steady on Tuesday but added language to its policy statement that it would ease “without hesitation” if the economy loses momentum for achieving the central bank’s 2% inflation target.

As expected, the BOJ maintained its short-term interest rate target at -0.1% and a pledge to guide 10-year government bond yields around 0%.

The BOJ also kept intact its forward guidance – or a pledge central banks make on future monetary policy – that commits to keeping current ultra-low interest rates “for an extended period of time, at least through around spring 2020.”

The decision on maintaining its interest rate targets was made by a 7-2 vote, with board members Goushi Kataoka and Yutaka Harada dissenting.

BOJ Governor Haruhiko Kuroda will hold a news conference at 3:30 p.m. (0630 GMT) to explain the decision.

In a quarterly review of its long-term projections, the BOJ cut its inflation forecast for the current fiscal year ending in March 2020 to 1.0% from 1.1% previously. (Reporting by Leika Kihara, Daniel Leussink, Tetsushi Kajimoto, Kaori Kaneko, Mari Saito and David Dolan; Editing by Chris Gallagher)


© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.