Japan central bank cuts view on overseas economies
TOKYO — The Bank of Japan maintained its ultraloose monetary policy Tuesday while downgrading the view on overseas economies amid a slowdown in China and other emerging market countries, warning it could adversely impact the Japanese economy.
Published: 15/09/2015 at 02:11 PM
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"Overseas economies -- mainly advanced economies -- have continued to grow at a moderate pace, despite the slowdown in emerging economies," the central bank said in a statement released after a two-day policy meeting, in which the bank stood firm on its massive asset purchases.
BoJ Governor Haruhiko Kuroda will meet the press later in the day, with market participants anticipating hints at further monetary easing as the bank has been failing to achieve its 2% inflation goal.
The downgrading came after the bank said last month, "Overseas economies -- mainly advanced economies -- have been recovering albeit with a lackluster performance still seen in part."
The latest statement also said the Japanese economy has continued to recover moderately, but noted "exports and production are affected by the slowdown in emerging economies," reflecting a cautious view over prospects for the economy, which contracted in the April-June quarter.
Citing the effects of the decelerating emerging economies, the BoJ revised down its view on Japan's exports and industrial production, saying they "have recently been more or less flat."
China is one of the biggest destinations for Japanese exports. In August, the bank said exports and production "have been picking up, albeit with some fluctuations."
Although prospects of the domestic economy face more uncertainty, the BoJ expects domestic demand, including corporate investment and household spending, are likely to remain solid on the back of robust earnings and wage growth.
At the policy meeting, the central bank's Policy Board voted to keep its key policy of increasing the country's base money at an annual pace of about 80 trillion yen ($665.9 billion) through massive asset purchases.
Japan's consumer prices leveled off in July from a year earlier after rising for 25 straight months due mainly to declining crude oil prices, risking the BoJ's attempt to achieve its 2% inflation target in the first half of fiscal 2015.
But the BoJ believes the trend of rising prices remains intact on the back of higher food and other prices, as a price index excluding energy prices has risen nearly 1%.
Japan central bank cuts view on overseas economiesTOKYO — The Bank of Japan maintained its ultraloose monetary policy Tuesday while downgrading the view on overseas economies amid a slowdown in China and other emerging market countries, warning it could adversely impact the Japanese economy.Published: 15/09/2015 at 02:11 PM Share on Google+ LINE it!"Overseas economies -- mainly advanced economies -- have continued to grow at a moderate pace, despite the slowdown in emerging economies," the central bank said in a statement released after a two-day policy meeting, in which the bank stood firm on its massive asset purchases.BoJ Governor Haruhiko Kuroda will meet the press later in the day, with market participants anticipating hints at further monetary easing as the bank has been failing to achieve its 2% inflation goal.The downgrading came after the bank said last month, "Overseas economies -- mainly advanced economies -- have been recovering albeit with a lackluster performance still seen in part."The latest statement also said the Japanese economy has continued to recover moderately, but noted "exports and production are affected by the slowdown in emerging economies," reflecting a cautious view over prospects for the economy, which contracted in the April-June quarter.Citing the effects of the decelerating emerging economies, the BoJ revised down its view on Japan's exports and industrial production, saying they "have recently been more or less flat."China is one of the biggest destinations for Japanese exports. In August, the bank said exports and production "have been picking up, albeit with some fluctuations."Although prospects of the domestic economy face more uncertainty, the BoJ expects domestic demand, including corporate investment and household spending, are likely to remain solid on the back of robust earnings and wage growth.At the policy meeting, the central bank's Policy Board voted to keep its key policy of increasing the country's base money at an annual pace of about 80 trillion yen ($665.9 billion) through massive asset purchases.Japan's consumer prices leveled off in July from a year earlier after rising for 25 straight months due mainly to declining crude oil prices, risking the BoJ's attempt to achieve its 2% inflation target in the first half of fiscal 2015.But the BoJ believes the trend of rising prices remains intact on the back of higher food and other prices, as a price index excluding energy prices has risen nearly 1%.
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