THIS NIGHT: Decision on the Monetary Policy of the Bank of Japan
Dear traders,
- According to analysts’ forecasts, on Friday the Bank of Japan will also maintain the current monetary policy as a result of its two-day meeting, including interest rate at the level of -0.1%.
- After the announcement of the decision on the interest rate, the Governor of Japan Haruhiko Kuroda will hold a press conference.
- The Japanese central bank will also publish a quarterly report on the prospects for the economy and inflation.
Most likely, significant changes in the prospects for the Japanese economy will not be made. Bank of Japan officials will keep their forecast that the target inflation rate of 2% will be reached in 2019.
Thus, the Bank of Japan may begin discussion of the financial incentive program in the next financial year.
However, a complete change in the policy of tightening monetary policy is unlikely after Kuroda stated that inflation should stabilize at 2% before the central bank of the country begins to reduce its huge volumes of government bonds and stock investment funds.
Recently, there have been several signals indicating that, due to improved economic forecasts, the central bank of Japan is preparing to wind down its program of quantitative easing.
The third world economy in the fourth quarter of 2017 grew at an annualized rate of 1.6%. Since the sharp growth of the Japanese economy in the 1980s, this is the longest period of Japan’s continued GDP growth.
However, consumer prices are growing more slowly than the Bank of Japan had hoped. Companies postpone the increase in prices and salaries. (Investing.com)
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