The Bank of Japan kept the interest rate at minus 0.1%
The decision of the Central Bank of Japan to maintain the parameters of the current monetary policy coincided with the expectations of most experts. The key rate was left at minus 0.1%. The bank will continue to target the yield on 10-year bonds at a level close to zero. The asset purchase program is maintained at 12 trillion yen. The Bank of Japan has raised its forecast for the country's economic growth against the background of mass vaccination of the population, which allows us to hope for an improvement in the epidemiological situation.
The regulator now expects GDP to increase by 4% in the current fiscal year, and by 2.4% in 2022. The previously published forecast suggested economic growth of 3.9% and 1.8%, respectively. The forecast for inflation was worsened. According to the updated information, in the current fiscal year, which started in April, inflation will be 0.1%. Earlier, consumer prices were expected to rise by 0.5%. In a statement, the Central Bank said that the state of the Japanese economy will improve. However, the pace of its recovery will be moderate.