MNI BRIEF: BOJ Policy And Guidance Steady, Lowers Econ View

The Bank of Japan board on Friday decided to lower its assessment on the economy and private consumption as it stood pat on monetary policy as expected, see: MNI STATE OF PLAY: BOJ Policy To Highlight Downside Econ Risks.

“For the time being, the BOJ will closely monitor the impact of Covid-19 and will not hesitate take additional easing measures if necessary, and also it expects short- and long-term interest rates to remain at their present or lower levels.”

The BOJ will review the medium-term economic growth and inflation rate forecast at the April 27-28 meeting in its quarterly Outlook Report. The focus is on the April consumer price index after the impact of cheap mobile phone charges wanes and retail price hikes likely emerge.

The board decided voted 8-to-1 to stand pat on the yield curve control policy and the asset purchases, maintaining its recovery scenario. Under the yield curve control framework adopted in September 2016, the BOJ will keep the target for the overnight interest rate at -0.1%.