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At the monetary policy decision meeting on the 17th, the Bank of Japan ruled in favor of maintaining the policy management policy within the framework of quantitative and qualitative easing with manipulation of long and short-term interest rates. We will continue to provide financial support measures in response to the effects of the new coronavirus infection. He acknowledged that the economy was “recovering” and revised his judgment higher. This will be the first upward revision since the decision was revised downward at the March meeting.
Monetary policy management will maintain the current short-term policy interest rate of minus 0.1% and the long-term interest rate target of “approximately 0%”, and will assume that it will remain at the current level of long- and short-term interest rates or below it. There were no changes in future directions (guidelines). The purchase policy for indexed listed investment trusts (ETFs), real estate investment trusts (J-REITs), commercial paper (CP) and corporate bonds has also remained unchanged.
Continuing, 1) a special program to support cash flow for the new krone, 2) extensive financing through purchases of government bonds and dollar financing operations, and 3) aggressive purchases of ETFs and J-REITs. We will endeavor to support cash flow and maintain financial market stability. “For the time being, he paid close attention to the impact of the new krone and reiterated his policy of” taking additional monetary easing measures without hesitation if necessary. “
Bloomberg conducted for 44 economistsAccording to the survey, more than 90% expected to decide to maintain the status quo of monetary policy.
Photographer: Kiyoshi Ota / Bloomberg
At the meeting, he raised his judgment on the current state of the economy, saying: “We are still in a difficult situation due to the effects of the new coronavirus infection both inside and outside Japan, but we are recovering as activity rises. economic resumes gradually. ” So far, he said, “economic activity has gradually resumed but is in an extremely difficult situation with the effects of the new coronavirus infection continuing to be seen both inside and outside of Japan.
Reflecting the resumption of domestic and foreign economic activities, the overseas economy has been revised up to “recover” and exports and production have been revised up to “recover”. On the other hand, capital investment has been revised down to “decline” and personal consumption has been revised from “there is a tendency to rebound” to “rebound overall”.
He said the outlook for the economy “will follow an improving trend,” but reiterated the outlook that “the pace is expected to remain moderate” as the influence of the new Crown remains throughout the world. ..
| Long-short interest rate manipulation (8 in favor and 1 against) |
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| Asset purchase policy (everyone agrees) |
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| Future orientation and commitment |
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The Bank of Japan has stated that there are “extreme uncertainties” about the consequences of the new Crown and its impact on the domestic and foreign economies. You also need to pay attention. “
The US Federal Public Market Commission (FOMC) decided to defer monetary policy at its regular meetings on the 15th and 16th, but will keep interest rates near zero for at least 2023 to support the US economic recovery. Suggested that. In response to the FOMC, the dollar weakened and the yen strengthened to a level below 105 yen per dollar at the same time in the currency market.
Governor Tohiko Kuroda will hold a regular press conference at 3:30 pm. The “main views” of the decision-making meeting will be released on September 29 and the “summary of deliberations” will be released on November 4.
(Updated by adding the contents announced by the Bank of Japan)
