The Bank of Japan kept monetary policy


Moscow. November 19. The Bank of Japan ended Thursday’s session adopted a decision to adhere to a previous course of monetary policy, abandoning the extension of incentives, despite a technical recession and the weakness of inflation.

According to published following the meeting statement, the Central Bank keeps the benchmark of increasing the monetary base by 80 trillion yen ($660 billion) a year. This result was expected by all analysts surveyed by Bloomberg.

The Governor of the Bank of Japan Haruhiko Kuroda said earlier that inflation trend is improving, and added that, if necessary, monetary policy will be adjusted.

In November 46% of the more than 40 economists surveyed by Bloomberg considered that the cycle of increasing incentives completed and more programs to expand will not. Last month this opinion was shared by 33% of respondents.

According to preliminary official data, Japan’s GDP in the III quarter of 2015 declined by 0.8% in recalculation on annual rates. The contraction of Japanese GDP relative to April-June amounted to 0.2% when economists expected a decline of 0.1%. Japan’s economy loses volume for the second consecutive quarter that meets the technical definition of a recession.

Consumer prices in Japan excluding fresh food declined in August and September.

At the end of October the Bank of Japan again lowered forecasts for GDP and inflation for 2015-2016 financial years.

According to the new estimates, inflation excluding fresh food and the effects of the tax increase on consumption will reach the target level of 2% per annum in the second half of 2016 Vigoda – in the period from 1 October 2016 to 31 March 2017. While the Central Bank makes the reservation that the dynamics of inflation will largely depend on oil prices.

Previously, the BOJ expected inflation in the country accelerated to the target level during the six months ending 30 September 2016, i.e. in the first half of 2016 Vigoda.

Japanese Topix stock index rose on Thursday by 0.7%. The yen gained 0.3% against the dollar by 0.3% to 123,28/$1.

The next meeting of the Bank of Japan will be held on 17-18 December.