Newsletter summary

The Bank of Japan keeps interest rates unchangedFreedeuceswildpokergamesonlineImplying that inflationary pressure is low and that there may be no rush to raise interest rates At the same time, the Japanese Ministry of Finance may intervene in the exchange rate. The market is concerned about the policy of the Bank of Japan and its impact on the economy.

Text of news flash

[the Bank of Japan keeps interest rates unchanged and the rate of bond purchases continues]

The Bank of Japan insists that its policy interest rate is 0% mur0.FreedeuceswildpokergamesonlineIn the range of .1%, the pace of bond purchases has not changed.

Although the market expects the Bank of Japan to adopt a loose monetary policy, its forward guidance is slightly hawkish, providing the market withFreedeuceswildpokergamesonlineThe space of imagination. However, at a time when the depreciation of the yen has not yet had a significant impact on inflation, the BoJ may not be in a hurry to raise interest rates.

In its meeting resolution, the Bank of Japan lowered the median GDP forecast for 2024 to zero.Freedeuceswildpokergamesonline.8%, while raising the core inflation forecast to 2.5%, indicating expectations of the risk of stagflation.

Kazuo Ueda, governor of the Bank of Japan, said that if inflation continues to rise, interest rates will be raised. While the BoJ maintained the pace of buying JGBs and corporate bonds, it deleted a description of the specific size of bond purchases in its policy statement, leaving room for the market to operate.

The Bank of Japan will not adjust its monetary policy as a result of exchange rate depreciation for the time being, but will closely monitor the impact of the exchange rate on the economy and prices. Although the depreciation of the yen has not significantly pushed up inflation, given Japan's dependence on imports, future increases in import prices are likely to be transmitted to consumer prices, pushing up inflation.

Analysts believe that the Bank of Japan is unlikely to raise interest rates in the near future, but the Japanese government is more likely to intervene in the exchange rate. As the year-on-year growth rate of inflation has slowed for several months in a row, the inflationary pressure on Japan is relatively small, and the Bank of Japan is in no hurry to raise interest rates. In addition, the Japanese Ministry of Finance usually intervenes when the yen exchange rate fluctuates sharply, especially when exchange rate fluctuations have a significant negative impact on the economy.

Risk tips include the risk of exchange rate fluctuations, the uncertainty of policy adjustments and external economic impacts.