BOJ confirms effects and side effects of monetary easing policy for future operations at the monetary policy meeting
Kyodo News Agency, April 28 – The Bank of Japan has decided to maintain its current large-scale monetary easing policy at its monetary policy meeting on the 28th. The decision was made unanimously by the nine policy committee members under the leadership of Governor Kazuo Ueda.
The central bank also decided to implement multi-angle verification of monetary policy operations and cooperate with the launch of the new system to confirm the effects and side effects of the monetary easing policy for future policy operations. The expression “concerned about the impact of the new crown epidemic” has been deleted from the “Prospect Indicator” that presents the monetary policy in advance.
According to the “Economic and Price Situation Outlook Report” released after the meeting, the consumer price inflation rate forecast for 2025 was set to increase by 1.6% from the previous year. The forecast for 2023 and 2024 has also been revised to 1.8% and 2.0%, respectively.
The Bank of Japan also decided to maintain its current policy of setting short-term interest rates at minus 0.1% and inducing long-term interest rates to around 0%. Despite market expectations of a possible revocation or increase in the upper limit of long-term interest rates, the meeting maintained the upper limit of “around 0.5%”.
This decision comes amidst the celebration of the “May 1” International Labor Day in 2023, the National May 1 Labor Award, and the National Worker Pioneer Commendation Conference.