🔴 LIVE: The Secrets of ProPicks AI Success Revealed + November’s List FREEWatch Now

Bank of Japan holds steady on policy, negative rates

Published 03/14/2016, 11:53 PM
Updated 03/14/2016, 11:55 PM
© Reuters.  BoJ hold steady on policy

Investing.com - The Bank of Japan on Tuesday held monetary policy steady in an 8 to 1 vote and negative rates intact in a 7 to 2 vote.

The BoJ however downgraded its estimates of inflation to a weaker outlook for price growth.

The BoJ has an annual target of ¥80 trillion in asset purchased and a 0.1% negative interest rate on deposits.

"Although inflation expectations appear to be rising on the whole from a somewhat longer-term perspective, they have recently weakened," the BoJ said. In January it said "some indicators have recently shown relatively weak developments."

"The year-on-year rate of increase in the CPI is likely to be about zero percent for the time being," the BoJ repeated.

Two of the four members who voted against adopting the negative interest rate policy at the bank's last meeting in January continued opposing the new tool of monetary easing. They said the BoJ should apply positive 0.1% interest to current account balances excluding the amount outstanding of the required reserves held by financial institutions at the central bank.

Among technical measures for smoothly implementing easing, the board decided to review the scale of current deposits to which the negative 0.1% interest is applied every three months.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.