In today’s Asian trading session, The Bank of Japan said that it would not change its accommodative monetary policy. With its benchmark interest rate Ten-year government bonds yield The historic lows of 0.1% and 0% remained the same. The Bank also indicated that it “will not hesitate to increase easing when necessary” and that it “will be flexible in making large-scale bond purchases”, releasing a clear dovish signal to the market and reinforcing Governor Haruhiko Kuroda’s statement that “the December move was a technical change”. The Bank of Japan’s economic forecasts are also very positive.
The following are economic forecasts: Bank of Japan has lowered its median GDP growth.This year’s forecast and the next 1.7% and 1.1% respectively (from 1.9% earlier) respectively. The central bank expects median core inflation expectations to remain at 1.6% this year and grow moderately to 1.8% in FY2024 – which remains below the BoJ’s target. This means that it is likely that the BoJ will maintain its accommodative policy of monetary policy until there is sustainable inflation.
On the other side, the most recent UK CPI Release for December