HomeLive CommentsBoJ kept policy unchanged, raised growth fiscal 2021, 2022 growth forecasts

BoJ kept policy unchanged, raised growth fiscal 2021, 2022 growth forecasts

BoJ left monetary policy unchanged today as widely expected,. Under the yield curve control framework, short-term policy interest rate is held at -0.1%. The central bank will continue to purchase unlimited amount of JGBs to keep 10-year yield at around 0%, with some fluctuations allowed. Goushi Kataoka dissented again in a 7-1 vote, pushing for further strengthening monetary easing.

In the Outlook for Economic Activity and Prices, BoJ raised fiscal 2021 growth forecasts to 3.3-4.0% (median at 3.9%), up from October’s projection of 3.0-3.8% (median at 3.6%). Fiscal 2022 growth forecasts was also raised to 1.5-2.0% (median at 1.8%), from 1.5-1.8% (median at 1.6%).

Core CPI forecasts for fiscal 2021 was revised to 0.3-0.5% (median at 0.5%), from 0.2-0.6% (median at 0.4%). Fiscal 2022 core CPI was projected at 0.7-0.8% (media 0.7%), from 0.4-0.7% (median at 0.7%).

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Outlook for Economic Activity and Prices,

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