The Bank of Japan (BOJ) on Wednesday kept monetary policy steady by a unanimous vote, a move that underscores its confidence that the country’s economy remains on track. As expected, the BOJ maintained its pledge to increase its monetary base by 60-70 trillion yen a year.
Markets are now focused on the central bank’s semi-annual report which is due at 3pm local time (0600 GMT). The report will reveal the BOJ’s long-term economic and price forecasts, including, for the first time, figures for fiscal year ending March 2017.
“The BOJ had a 1.3 percent target for a fiscal 2014 CPI growth, excluding the impact of the tax hike, and a 1.9 percent forecast for 2015. We expect them to retainthis view, that inflation will continue accelerating towards theinflation target,” said Izumi Devalier, Japan economist with HSBC.