Bank of Japan (BOJ) on this day Friday (30/10) announces its monetary policy this morning after Japan released a series of economic indicators. BOJ decided to maintain the aggressive easing policy program, the results of voting conducted by the Board BOJ 8: 1.
Therefore, easing stimulus by 80 trillion yen per year to buy government bonds and risky assets continued. One kontar sound coming from people who are still the same, namely Takahide Kiuchi. He warned that the expansion of the current monetary easing as well as the purchase of government bonds to be reduced back to 45 trillion yen.
BOJ Governor Haruhiko Kuroda, still retains optimistic outlook in recent months, which assume that the cycle of the Japanese economy is still strong and intact, where profit-profit local companies are still high and labor markets showed good improvement. The only booster, according to Kuroda, just lower fuel prices.
The statement points BOJ Governor's speech in October 2015
In his speech at the press conference after the monetary policy meeting today, the speech Governor Kuroda summarized in the following points:
The economic recovery is still ongoing moderate even though there is a slowdown in developing countries
Economic cycle the economy is still running normally
Japanese growth is still potential for growth in fiscal year 2015 and 2016
CPI will probably be at the level of 0.0 percent for some time to come
Forecast achieving the target of 2 per cent of Japan's CPI is in the second half of 2016 forward.
Responding to the news, Japanese insurance company analysts interviewed by Reuters said the effects of the weak yen on the price of imported goods is expected to taper and consumer inflation is likely to further weaken around the end of this year. Thus, predictions, could be the BOJ will add easing in January next year.
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