empty
 
 

2021.07.1604:41:00UTC+00Bank Of Japan Keeps Policy Rate; Cuts Fiscal 2021 Growth Outlook

The Bank of Japan decided to maintain its monetary stimulus unchanged and unveiled a preliminary outline for the new programme to support efforts on climate change.

The bank also lowered its near-term growth outlook citing the impact of the coronavirus pandemic and raised its fiscal 2021 inflation forecast.

The board, governed by Haruhiko Kuroda, on Friday, voted 8-1, to hold the interest rate at -0.1 percent on current accounts that financial institutions maintain at the central bank.

The bank will continue to purchase a necessary amount of Japanese government bonds without setting an upper limit so that 10-year JGB yields will remain at around zero percent.

The BoJ provided a preliminary outline for a new-funding programme to support efforts in fields related to climate change. The bank plans to launch the measure this year and to continue until March 2031.

The bank downgraded its near-term growth projections. The economy is forecast to expand 3.8 percent in the fiscal 2021 instead of 4 percent estimated in April.

However, the outlook for the fiscal 2022 was lifted to 2.7 percent from 2.4 percent and the estimate for the fiscal 2023 was retained at 1.3 percent.

Citing higher energy prices, the bank expects inflation to rise to 0.6 percent in the fiscal 2021 instead of 0.1 percent projected previously.

Inflation forecast for the next fiscal was lifted marginally to 0.9 percent from 0.8 percent and the outlook for the fiscal 2023 was maintained at 1 percent.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback