The Bank of Japan decided on Friday to keep the interest rate steady at 0.25%, in a move that was widely expected.
The Bank of Japan maintained its view that Japan's economy remains on a moderate recovery path, adding that inflation expectations have risen moderately.
The most important statements of the governor of the Bank of Japan Kazuo Ueda during his press conference were as follows:-
- Uncertainty surrounding the Japanese economy, prices remain high.
- Attention should be paid to financial markets and their impact on the economy and prices.
- We will continue to adjust the degree of easing if we want to achieve expectations on the economy and prices.
- We will monitor economic and market trends with great attention.
- The markets remain unstable.
- The risk of exceeding inflation has receded somewhat.
- There is some time to decide on the policy as the bullish risks for prices have decreased.
- We raised our assessment of private consumption with wage growth.
- Recent data suggest that we may be able to raise expectations on core inflation, but external trends raise uncertainty about this.
- But there is no change in our thinking that we will continue to raise rates if the economy moves in line with expectations.
- We will take the next political step if there is sufficient evidence that the economy matches expectations.
The general language has not changed much from previous meetings, they are still thinking about tightening the policy, but only if the conditions are right for this.
