Bank of Japan intends to maintain the current monetary easing

BoJ Governor Kazuo Ueda stated in his semi-annual report on currency and monetary supervision issued on Wednesday that, given the current conditions of economic activity and prices, he expects the current accommodative conditions to be maintained.

In his estimation, Ueda believes that the 2 percent price stability target will be achieved in a sustainable and stable manner towards the end of the forecast period in the January 2024 forecast report, as various data and information obtained from companies gradually revealed that the cycle between wages and prices has become more solid. This is good and beneficial for the Japanese economy.

On this basis, the Central Bank considered the quantitative and qualitative monetary easing policy framework with yield curve control and negative interest rate policy to date to be among the most important tools that have played their roles, and therefore the Bank of Japan chose to change the monetary policy framework.

“Specifically, the bank decided, among other measures, to set the overnight interest rate as the official interest rate and encourage this rate to remain at around 0 to 0.1 percent,” Ueda said. Following Ueda’s remarks, the USD/JPY pair traded at 151.70, down 0.04% on the day.