BOJ Policy Unchanged and Optimistic About Japanese Economy

The Bank of Japan on Tuesday stood pat and expressed a more optimistic view on the country’s economy with exports picking up on a weaker yen after Donald Trump’s U.S. election win, dampening speculation of further monetary stimulus anytime soon.

BOJ Governor Haruhiko Kuroda, however, voiced reluctance to raise the central bank’s government debt yield target in the near future, despite recent increases in Japan’s long-term interest rates in tandem with rising U.S. Treasury yields.

“Promoting powerful monetary easing under the current policy is most appropriate” to pave the way for achieving a 2 percent inflation target,” Kuroda said at a press conference following a two-day meeting of the bank’s policy board.

“Yield curve control” policy has “functioned well” since it was introduced in September, Kuroda said, indicating the BOJ will maintain efforts to push down long-term interest rates.

via Mainichi

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