Quantitative and qualitative monetary easing (QQE) has been exerting its intended effects, and the Bank will continue with QQE, aiming to achieve the price stability target of 2 percent, as long as it is necessary for maintaining that target in a stable manner, Bank of Japan stated.
On expected lines, the Bank of Japan has maintained status quo on policy rates. The tone of the central bank suggests it is not in a hurry to increase its monetary easing.
Quantitative and qualitative monetary easing (QQE) has been exerting its intended effects, and the Bank will continue with QQE, aiming to achieve the price stability target of 2 percent, as long as it is necessary for maintaining that target in a stable manner, Bank of Japan stated. It will examine both upside and downside risks to economic activity and prices, and make adjustments as appropriate, the statement added.
Money market operation would be conducted by Bank of Japan in order to add weight to the monetary base at an annual 80 trillion yen pace, as per the monetary policy guidelines announced by BOJ, as decided by its Policy Board.
The Japanese government bonds (JGBs) will be bought by the Bank so as to increase the monetary base. The average remaining maturity for this would be 7-10 years. Exchange-traded funds (ETFs) and Japan real estate investment
trusts (J-REITs) would also be purchased.
Purchases made by the Bank will be in alignment with the financial market conditions and also would be kept flexible by the same. This would buoy the possibilities of an interest rate cut.
Bank will maintain their amounts outstanding at about 2.2 trillion yen and about 3.2 trillion yen respectively regarding CP and corporate bonds.
The overseas and advanced economies of Japan rebounded however there is still scope for improvement.
With the improvement in corporate profits, business fixed investment has been stable while public investment has started declining. Steady employment and income situation backed up private investment.
With regard to the outlook, Japan's economy is expected to continue recovering moderately.
The year-on-year rate of increase in the CPI is likely to be about 0 percent for the time being, due to the effects of the decline in energy prices.
Risks to the outlook include developments in the emerging and commodity-exporting economies, the prospects regarding the debt problem and the momentum of economic activity and prices in Europe, and the pace of recovery in the U.S. economy.
Quantitative and qualitative monetary easing (QQE) has been exerting its intended effects, and the Bank will continue with QQE, aiming to achieve the price stability target of 2 percent, as long as it is necessary for maintaining that target in a stable manner, Bank of Japan stated. It will examine both upside and downside risks to economic activity and prices, and make adjustments as appropriate, the statement added.
Money market operation would be conducted by Bank of Japan in order to add weight to the monetary base at an annual 80 trillion yen pace, as per the monetary policy guidelines announced by BOJ, as decided by its Policy Board.
The Japanese government bonds (JGBs) will be bought by the Bank so as to increase the monetary base. The average remaining maturity for this would be 7-10 years. Exchange-traded funds (ETFs) and Japan real estate investment
trusts (J-REITs) would also be purchased.
Purchases made by the Bank will be in alignment with the financial market conditions and also would be kept flexible by the same. This would buoy the possibilities of an interest rate cut.
Bank will maintain their amounts outstanding at about 2.2 trillion yen and about 3.2 trillion yen respectively regarding CP and corporate bonds.
The overseas and advanced economies of Japan rebounded however there is still scope for improvement.
With the improvement in corporate profits, business fixed investment has been stable while public investment has started declining. Steady employment and income situation backed up private investment.
With regard to the outlook, Japan's economy is expected to continue recovering moderately.
The year-on-year rate of increase in the CPI is likely to be about 0 percent for the time being, due to the effects of the decline in energy prices.
Risks to the outlook include developments in the emerging and commodity-exporting economies, the prospects regarding the debt problem and the momentum of economic activity and prices in Europe, and the pace of recovery in the U.S. economy.
No comments:
Post a Comment