At the Bank of Japan’s monetary policy meeting held on the 25th and 26th, it was unanimously decided to keep the target rate for the overnight uncollateralized call rate unchanged at 0-0.1%. The photo shows the Bank of Japan head office. Photographed in March (2024 Reuters/Kim Kyung-Hoon)
TOKYO (Reuters) – At its monetary policy meeting held on the 25th and 26th, the Bank of Japan unanimously decided to keep the policy interest rate target for the overnight uncollateralized call rate unchanged at 0% to 0.1%. Ta. Regarding long-term government bonds, the policy will also be implemented in accordance with the policy decided at the decision meeting in March.
At its previous decision-making meeting in March, the Bank of Japan reviewed the framework for large-scale easing, while also stating that it would “continue to purchase long-term government bonds at roughly the same amount as before.” Although there were speculations in the market that it would reduce its purchases, the Bank of Japan maintained its purchasing policy.
In the “Outlook for the Economy and Prices” (Outlook Report) released on the 26th, the outlook for prices was raised. The year-on-year rate of increase in the consumer price index (core CPI) excluding fresh food has been increased to 2.8% in fiscal 2024 and 1.9% in fiscal 2025, both from April. The new figure for FY2016 was set at 1.9%.
The Bank of Japan pointed out that the underlying price increase rate will “gradually increase” as the output gap improves, the virtuous cycle between wages and prices continues to strengthen, and medium- to long-term inflation expectations rise. . “Inflation will remain at a level that is generally consistent with the price target in the second half of the projection period.”
Furthermore, the Bank reiterated that it will manage monetary policy appropriately in accordance with economic, price, and financial conditions under the 2% inflation target. If the Bank of Japan’s economic and price outlook is realized and the underlying inflation rate rises, “we will have to adjust the degree of monetary easing,” but added, “For the time being, the financial environment will remain accommodative.” will continue.”
Vice President Norazo Himi attended the decision-making meeting via teleconference because he was infected with the new coronavirus.
(Takahiko Wada editing: Atsuko Aoyama, Shiho Tanaka)
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