Market updates and forecasts

Get the latest economic news from ForexMart, including updates on the financial market, central banks' policy announcements, financial indicators, and other relevant news which can have an impact on the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

BOJ Sustained Monetary Policies Giving Positive Inflation Perspective


January, 23 2018
watermark Economic news

The monetary policies were maintained by the central bank of Japan on Tuesday that gives a positive outlook on inflation compared three months before, implying a strong recovery of a slow uptrend in reaching two percent target.


However, Governor Haruhiko Kuroda is likely to inhibit market speculation for an early stopping of stimulus because the inflation is still far from the target, which was mentioned during the post-meeting brief.

As presumed, the BOJ sustained the promise with an inclination to push through the short-term interest rates at minus 0.1 around zero percent with its two-day rating review, which was decided on Tuesday. They also continued their easing in government bonds purchases, which is assumed to have an increase estimated to be at the rate of 80 trillion yen or $722 billion yearly.


On its quarterly forecast, the BOJ kept its 1.4 economic growth estimate for the year starting in April, with the target of 0.7 next year. Inflation has recently moved laterally, according to the reports from the BOJ. It gives a more sanguine perspective amic the weakened state of the economy.

The members of the board maintained its price forecast to reach the around two percent for the fiscal year until March 2020.


The dollar has declined against the Japanese yen as the market reacted on the course of inflation.


A weaker inflation and the anticipation for a price increase, which affected the plan of BOJ to end the deflation and boost the household spending of the country.


Although the central bank has stated that the country’s growth is assumed to be at a steady pace, it will still continue its stimulus program until the inflation target has been reached.


With the current direction of the central bank, it seems that the country is not going to “normalize” the policy, amid an increasing market speculation, as stated by the senior market economist at Mitsubishi UFJ Morgan Stanley, Naomi Muguruma.


A few analysts anticipate the BOJ to adjust upward its target yield for the year since various central banks are en route to exiting the crisis-mode of the policies, which puts more tension to the global bond yields. The central bank would have changes in their plans most likely in the second half of 2018. For now, they will remain steadfast in the current policies.

Feedback

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
Risk Warning:
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.