Friday, July 10, 2020 | ePaper

Bank of Japan leaves policy unchanged after Fed rate cut

  • Print
AFP , Tokyo :
The Bank of Japan on Thursday warned of increasing downside risks for the global economy but held off on further easing, even as European and US peers loosen their credit grip.
The central bank said it would maintain its ultra-loose monetary policy, vowing to keep interest rates low at least until the spring of 2020, though governor Haruhiko Kuroda did hint at possible moves next month.
But it warned of headwinds including the prolonged trade war between the US and China, and Britain possibly leaving the European Union without a divorce deal.
"Given that, recently, slowdowns in overseas economies have continued to be observed and their downside risks seem to be increasing, the Bank judges that it is becoming necessary to pay closer attention to the possibility that the momentum toward achieving the price stability target will be lost," it said in a post-meeting statement.
The statement - released after a two-day meeting - did not include a revision to its July inflation outlook, projecting 1.0 percent for the year to March 2020 and 1.3 percent the following year.
Those figures are far short of the two percent the BoJ has long set as its target - a figure seen as key to turbocharge the world's third-largest economy.
Kuroda said in a news conference that fresh easing measures at the October meeting were possible.
"If you were asking me if we are becoming more inclined toward further easing, relative to our last meeting, that is correct," he told journalists.
He also shrugged off the risks of a consumption tax hike scheduled to kick in next month.
"We do not think at this point that the economy would see a significant impact from the consumption tax hike," he said. "But consumers' minds are affected by various things. So we need to closely monitor that."
But some observers have questioned how much more Bank policymakers could do to support the economy.
"Currently, the BoJ has no effective policy options left," said Naoya Oshikubo, senior economist at Sumitomo Mitsui Trust Asset Management.
A further cut in its already negative interest rate is "bound to have a detrimental impact on financial institutions and the financial system", Oshikubo said in a note released before the policy decision.
"Unless the positive side effects outweigh the negative effects, this is not a realistic option," he said.

More News For this Category

Challenging Trump on economy, Biden unveils $700b recovery plan

AFP, Dunmore, USA :Joe Biden unveiled a $700 billion plan Thursday to create jobs and invest in new technologies in an aggressive challenge to President Donald Trump on economic

Novoair offers discount for frequent flyers

Business Desk :Novoair, one of the country's private airlines, today announced 10 percent discount to its all ticket fare marking the 8th year of its frequent flyer programme named

IMF urges 'equity-like' government support for virus-hit firms

Reuters, Washington :International Monetary Fund Chief Economist Gita Gopinath urged governments to shift to "equity-like" support from one focused on loans as the coronavirus pandemic inflicts prolonged damage on

Norway to continue assisting Bangladesh to improve quality of shipbuilding industry

Business Desk :Norway will continue its support to Bangladesh in improving the quality of shipbuilding and ship recycling industry.The information was revealed on Wednesday while outgoing Norwegian Ambassador to

On behalf of Md Ataur Rahman Prodhan, CEO of Sonali Bank Limited, Mir Hasan Mohammad Zahid, Deputy General Manager (In-charge) of Rajshahi General Manager's office of the bank, handing over 200 set PPE for doctor & nurses uses to Brigadier General Md. Zamilu Rahman, Director of Rajshahi Medical Hospital on Thursday. Others officers of the bank were also present.

On behalf of Md Ataur Rahman Prodhan, CEO of Sonali Bank Limited, Mir Hasan Mohammad Zahid, Deputy General Manager (In-charge) of Rajshahi General Manager's office of the bank, handing over 200 set PPE for doctor & nurses uses to Brigadier General Md. Zamilu Rahman, Director of Rajshahi Medical Hospital on Thursday. Others officers of the bank were also present.

.

Pandemic clouds future for BD migrants stranded at home

Business Desk :Md Rezaul Islam, a 30-year-old native of Singair in Manikganj, went to Saudi Arabia in 2008 for work by borrowing about Tk 250,000 from relatives.He worked there

Industrial city to be greener to woo investors

Economic Reporter :The government will set up a green industrial zone on 2,000 acres of land in Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) to attract foreign and local investors

IBBL opens its East Nasirabad sub-branch in Ctg

IBBL opens its East Nasirabad sub-branch in Ctg

Business Desk :Islami Bank Bangladesh Limited inaugurated its East Nasirabad sub-branch under O.R. Nizam Road Branch at East Nasirabad, Chattogram on Thursday. Md. Nayer Azam, Senior Executive Vice President

Prime Bank approved 13.50pc cash dividend

Business Desk :The 25th Annual General Meeting (AGM) of Prime Bank Limited was held on Thursday through digital platform instead of physical presence. The AGM approved audited financial statements

Stocks end in green

Economic Reporter :Country's both the bourses, Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE), on Thursday closed week with upward trend as optimistic investors showed their appetite following