The Bank of Japan kept the short-term interest rate at 0.5%.
The Bank of Japan kept the short-term interest rate at 0.5% and the most important thing that came out in today's statement was:
- The Japanese economy is recovering moderately, although some weakness persists.
- Consumer spending is increasing at a moderate pace.
- Inflation expectations are gradually rising.
- Caution should be exercised about the impact of movements in the financial and foreign exchange markets on the economy.
- Core inflation is expected to meet the BOJ's price target in the second half of the three-year forecast period.
- Exports and industrial production show weak momentum.
- The Japanese economy is expected to continue to grow beyond its potential.
- There is still great uncertainty about the economic outlook and prices.
The most important thing that came out of Kazuo Ueda's statements during the press conference of the governor of the Bank of Japan was:
- The Japanese economy is recovering moderately, but there is still some weakness.
- The uncertainty surrounding the Japanese economy remains high.
- This includes the economy, prices, trends in World Trade Policy.
- Sufficient attention should be paid to foreign exchange markets and their impact on the economy and prices.
- The impact of foreign exchange has become even greater than before.
- Companies are more eager to raise wages and prices.
- We will continue to adjust the degree of monetary easing to meet expectations.
- We will guide the policy from the perspective of achieving the price target in a sustainable and stable manner.
- A strong impetus to wage increases extends to small businesses.
- Wage developments should be carefully monitored and scrutinized for their trends.
- The wage trend is on the right track, or maybe a little stronger.
- Core inflation is still below 2%.
- However, it should be warned that rising prices may change households ' expectations of inflation.
- There are still big doubts about the US tariff policy.
- We will continue to scrutinize the impact of US trade policy on the world economy, in particular on the Japanese economy.
- Some members stressed the need to pay attention to the risks of prices exceeding inflation.
- We will make the decision based on the study of domestic prices, wage trends and uncertainty abroad.
- We want to implement policies before it's too late.
- We will respond quickly in the event of abnormal changes in long-term bond yields, but we do not expect this to happen at the moment.
- Achieving the 2% inflation target is important for long-term credibility.
- Does not rule out reconsidering the goal in the future.
- The pace of raising interest rates in the future depends on the data and other information.
