Bank of Japan to Continue Low Interest Rates for at Least Another Year
Bank of Japan has confirmed that it will continue to maintain interest rates at low levels for at least another year. Concerns about rising uncertainties of a global economic slowdown and recession risks have forced BoJ to continue this policy.
However, one member of the nine-member board of Japan’s central bank has expressed concerns that declining borrowing costs could do harm the economy instead of supporting it. Short-term interest rates will continue at -0.1 percent while long-term rates will be maintained at around zero percent.
However, a promising aspect of this decision is their commitment to a timeline of about one year. This gives hopes to the market that Japan’s ultra-easy monetary policy could see some changes after this period. Meanwhile, USD/JPY is trading slightly lower at 109.71 so far today.
There are concerns that the US-China trade war could have caused a contraction in Japanese economy during Q1 2019. Inflation also continues to remain well under the two percent target despite several measures undertaken by the government.
ABOUT THE AUTHOR
See More
Sidebar rates
Add 3442
Related Posts
SaveAdd 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals