BOJ Keeps Monetary Policy Steady, Expresses Optimism About Economic Recovery - Forex News by FX Leaders
BOJ Keeps Monetary Policy Steady, Expresses Optimism About Economic Recovery

BOJ Keeps Monetary Policy Steady, Expresses Optimism About Economic Recovery

Posted Thursday, September 17, 2020 by
Arslan Butt • 1 min read

At its latest meeting earlier today, the Bank of Japan (BOJ) chose to keep its monetary policy unchanged amid hopes for improvement in economic conditions in the coming months. The central bank also hinted that additional stimulus may not be required in the near future to offset the economic fallout from the coronavirus pandemic.

However, Japan’s economy continues to face several downside risks, mainly due to the pandemic, and BOJ has confirmed its readiness to tackle any such challenges with additional monetary support if the economy is further impacted. For now, the BOJ has held rates steady at -0.1% and targets 10-year government bonds yields to be held around 0.

In its official statement, the central bank notes, “Japan’s economy has started to pick up with economic activity resuming gradually, although it has remained in a severe situation due to the impact of the novel coronavirus (COVID-19) at home and abroad. Overseas economies also have started to pick up from a state of significant depression. In this situation, exports and industrial production have turned to a pick-up.”

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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