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BANK OF JAPAN STATEMENT MAINTAINS FLAT MONETARY POLICY

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BANK OF JAPAN STATEMENT MAINTAINS FLAT MONETARY POLICY

Oct 7 2014, 9.06am GMT

Stock.com

The BOJ Statement on Monetary Policy gave the following headlines:

·         The monetary base will increase at an annual pace of about 60-70 trillion yen.

·         The bank will purchase Japanese government bonds (JGBs) so that their amount outstanding will increase at an annual pace of about 50 trillion yen, and the average remaining maturity of the Bank's JGB purchases will be about seven years.

·         The Bank will purchase exchange-traded funds (ETFs) and Japan real estate investment trusts (J-REITs) so that their amounts outstanding will increase at an annual pace of about 1 trillion yen and about 30 billion yen respectively.

·         The Bank will maintain CP and corporate bonds amounts outstanding at about 2.2 trillion yen and about 3.2 trillion yen respectively.

·         Recovery of Japan's economy has continued moderately.

·         Overseas economies, mainly advanced economies, are recovering, slowly in parts.

·         Exports have shown some weakness.

·         Business fixed investment has increased moderately as corporate profits have improved.

·         Public investment has levelled off at a high level.

·         Employment and income has improved steadily and Private consumption has remained resilient.

·         Decline has continued in housing investment.

·         Industrial production has shown recent weakness.

·         Business sentiment is favourable.

·         The year-on-year rate of increase in the CPI is around 1.25 percent.

·         Risks to the outlook include developments in the emerging and commodity-exporting economies, the prospects for the European debt problem, and the pace of U.S recovery.

·         The Bank will continue with QQE, aiming to achieve the price stability target of 2 percent.

 

The unanimous decision on the above guidelines was made by the nine Policy Board members. 

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