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BOJ leaves its monetary policy intact
The Bank of Japan that finished its regular two-day gathering today, left the key parameters of its monetary policy intact, exactly as anticipated.
The target revenue of 10-year government bonds of this Asian country was left at zero, as the Bank of Japan informed. The interest rate on deposits of commercial financial institutions in the major bank is preserved at -0.1%.
Both decisions actually coincided with analysts’ hopes. As at the previous four gatherings, this verdict was taken by 8 votes with 1 vote against.
The Bank of Japan also left the volume of the asset repurchase program intact at approximately 80 trillion yen annually.
Japan’s economy keeps soaring at a moderate tempo, as follows from the communiqué.
Simultaneously, the Bank of Japan lowered its inflation estimate. So, according to the June statement, the surge in the key consumer price index in Japan has recently wavered in the range 0.5%-1%.
As follows from official statistics, Japan’s basic inflation in April accounted for 0.7% in annual terms, speeding down for the second consecutive month.
In April, the leaders of the Bank of Japan excluded from the text of the statement following the gathering the phrase that by what time the country’s key financial institution plans to meet the inflation objective at the level of 2%. Previously, the Bank of Japan expected that it would take place approximately in the 2019 financial year, expected to be over in March 2020.
Haruhiko Kuroda, Chairman of the Japanese Central Bank, who headed the country’s key financial institution in 2013, planned to achieve a 2% inflation objective within 2 years. The statesman changed the target date for inflation up to six times.
Apparently, differences in the monetary policy of Japan’s major bank as well as other key financial institutions of developed nations keep growing.
All attention on the market is on the Brexit process. Fears over the no-deal Brexit pushed the British pound deep down yesterday after UK Prime Minister Boris Johnson claimed he was ready to abandon negotiations.
All the interesting market movements are here!
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!