BOJ leaves policy rate unchanged in June monetary policy decision, as expected ...Middle East

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BOJ leaves policy rate unchanged in June monetary policy decision, as expected
Prior decisionShort-term interest rate target maintained at 0.50%Vote on policy rate was unanimousBOJ to reduce its monthly outright JGB purchases to about ¥2 trillion in January-March 2027The vote was a majority vote of 8-1; Tamura dissented saying the bank should allow long-term rates to be determined by the market and its participantsThe amount will be cut down by ~¥400 billion each calendar quarter until January-March 2026And then by ~¥200 billion each calendar quarter from April-June 2026Japan's economy has recovered moderately, although some weakness has been seen in partJapan's economic growth is likely to moderate amid slowdown in overseas economies and a decline in domestic corporate profits among other factorsUnderlying CPI inflation is likely to be sluggish, mainly due to the deceleration in the economyHowever, expected to increase gradually, since it is projected that a sense of labor shortage will grow as the economic growth rate risesThere are various risks to the outlookIt is extremely uncertain how trade and other policies in each jurisdiction will evolve and how overseas economic activity and prices will react to themFull statement This article was written by Justin Low at www.forexlive.com.

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