The Bank of Japan refrained from boosting monetary stimulus even after inflation came to a halt, with Governor Haruhiko Kuroda betting it will re-emerge as the impact from cheaper oil fades.
The central bank kept a plan to expand the monetary base at an 80 trillion yen ($672 billion) annual pace, as forecast by 32 of 34 economists in a Bloomberg News survey. Later today, the BOJ will present updated inflation and growth forecasts and Kuroda will conduct a press briefing.
Holding off for now gives Kuroda time to gauge whether weakness in the U.S. and China last quarter will reverse following American job gains and Chinese stimulus. At the same time, today’s decision — following evidence of declines in consumer spending and industrial output in March that underscored a muted Japanese rebound — raises the risk of escalating political pressure to do more.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015