The Central Bank raised the inflation forecast for the current fiscal year to 2.3% and worsened GDP growth to 2.4%

There is an update from 09:00 → Japan in June increased imports by almost one and a half times
Moscow. 21 July. INTERFAX.RU – The Bank of Japan left unchanged the main parameters of monetary policy following a two-day meeting that ended on Thursday.

The short-term interest rate on deposits of commercial banks with the Central Bank was left at minus 0.1% per annum, the target yield on ten-year government bonds is near zero, the regulator said in a statement.

The Bank of Japan also retained the unlimited government bond buyback program. He also reiterated his April pledge to buy back 10-year government bonds daily at a fixed rate in order to avoid rising yields above the acceptable limit (0.25%).

The Japanese Central Bank raised its inflation forecast for the current fiscal year, which will end in March 2023. The new forecast sees consumer prices excluding fresh food rise by 2.3%, up from the 1.9% forecast in April. The indicator is above the central bank’s target of 2%.

The regulator expects inflation to slow to 1.4% next year.

The forecast for GDP growth this year was downgraded to 2.4% from 2.9%. The Bank of Japan cited a slowdown in global economies and ongoing problems in supply chains.

Japan’s economy in the next fiscal year is expected to grow by 2%, not 1.9% as previously forecast.

Also, the leaders of the Central Bank reiterated that they are ready to further ease monetary policy if necessary.

The yen rate against the dollar as of 8:27 Moscow time is 138.19 yen compared to 138.27 yen at the close of the previous session.