The Bank of Japan opted to stick with its aggressive measures to boost inflation as other major central banks around the world begin to wind down stimulus. In a statement following the end of a two-day meeting, the BoJ said it is maintaining the short-term interest rate at -0.10% and the target for the 10-year government bond yield at 0.00%. The outlook report accompanying the statement forecast inflation to hit 2.00% in fiscal year 2019-2020.
However, core consumer prices are now expected to grow 0.80% during the current fiscal year, lower than an earlier projection of 1.10%. The Japanese economy has now grown for six straight quarters, but the country's 2.00% inflation target remains elusive, with core inflation coming in at a mere 0.70% in September. EURJPY is down in Tuesday morning trade, with the pair last seen just above the strong support around the 131.400-zone.
Bank of Japan Stands Pat
Daily Analysis - 31/10/2017