PT Solid Gold Berjangka | BOJ Keeps Negative Rate in Place With Tweaks to Economic Outlook

01:45 24 January in Fiscal & Monetary, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP

Bank of Japan BOJ Policy Rate PT SGB Solid Group SG Berjangka Solid Gold Berjangka

Solid Gold Berjangka | The Bank of Japan kept its monetary policy settings steady and adjusted its economic projections while offering no clear hints as to the timing for a potential end of the negative interest rate.

The BOJ maintained its -0.1% short-term rate and kept yield curve control parameters intact at the end of a two-day meeting, according to its statement Tuesday. The bank cut its inflation forecast for the fiscal year from April to 2.4% from 2.8% in a quarterly outlook report. That implies price gains will continue to exceed its 2% target for some time, as has been the case since April 2022.

The policy decision was unanimously expected by BOJ watchers surveyed by Bloomberg. A major earthquake on New Year’s Day and a deepening funding scandal engulfing Prime Minister Fumio Kishida’s ruling party made this an inopportune time for Japan’s first rate hike since 2007. With the hold, the BOJ retains its status as global outlier on policy, as the Federal Reserve and European Central Bank hint at rate cuts later this year.

The stand-pat decision is unlikely to change the prevailing view among economists that the BOJ will raise rates at some point this year.

Surveyed economists see April as the most liking timing for the end of the negative rate as it will provide time for the central bank to assess the results of annual pay negotiations. Higher raises are seen as a key element for securing a positive cycle of rising prices and wages that feeds into economic growth.

Source : Bloomberg