BOJ cuts inflation forecast, leaves stimulus unchanged
23 January

BOJ cuts inflation forecast, leaves stimulus unchanged

The Bank of Japan cut their inflation forecast at their monetary policy meeting on Wednesday citing increasing risks to the economy from falling global demand, halting policy makers’ year-long efforts to achieve durable growth. The yen slid as a result, trading -0.24% against the pound. The BoJ maintained their ultra-loose monetary policy, keeping their short-term interest rate at -0.1% and pledging to steer 10-year government bond yields around 0%. Concern at the BoJ remains high, with the US-China trade war, a potential ‘hard’ Brexit and a slowdown in China's economy taking its toll on a export driven economy, “If the China-U.S. economic friction, trade friction becomes prolonged, it’s clear that we will see the impact from that," Governor of the BoJ, Kuroda said. "I sincerely hope that they’ll get this resolved quickly."

 

 

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