PT Solid Gold Berjangka | Bank Of Japan Raises Benchmark Interest Rate, Outlines Roadmap For Trimming Bond Buying Program
Bank of Japan BOJ Policy Rate PT SGB Solid Group SG Berjangka Solid Gold Berjangka
Solid Gold Berjangka | Japan’s central bank raised its benchmark interest rate to “around 0.25%” from the previous range of 0% to 0.1%, and indicated that it plans to reduce its JGB-buying program.However, the BOJ said it expects real interest rates to remain “substantially negative,” adding that “the accommodative financial environment will continue to firmly support economic activity.”
The central bank expects core inflation, excluding fresh food prices, to reach 2.5% by the end of FY2024 and “around 2%” in FY2025 and FY2026.The BOJ said it will continue to raise policy rates and adjust the degree of monetary easing, assuming the economic outlook is realized.
Japan’s fiscal year runs from April 1 to March 31, so FY2024 will end in March 2025.The BOJ announced that it will reduce its purchases of Japanese government bonds to about 3 trillion yen per month in the January-March period of 2026.
The BOJ added that the reduction would be about ¥400 billion per quarter, reducing its total JGB holdings by about 7% to 8%. according to CNBC calculations, the BOJ’s outstanding JGB holdings stood at a whopping ¥579 trillion as of July 19.
Source: CNBC