Get Breaking Alerts on Stocks Before The Mainstream Media

Stay informed of the biggest news on stocks so you can react before 90% of retail investors.
Email address
We guarantee you to keep your privacy
Connect with us
Financial Press
dow-jones-newswires:-bank-of-japan-maintains-ultralow-interest-rates
dow-jones-newswires:-bank-of-japan-maintains-ultralow-interest-rates

Breaking

Dow Jones Newswires: Bank of Japan maintains ultralow interest rates

TOKYO — The Bank of Japan on Thursday kept its ultralow interest rates in place, staying away from a global wave of monetary tightening despite growing inflation.

The decision confirms a further policy divergence between the U.S. and Japan, adding downward pressure on the yen. The yen fell briefly to a fresh 24-year low of more than 145 against the dollar after the BOJ’s announcement. On Wednesday, the Federal Reserve raised interest rates by 0.75 percentage points and signaled additional large increases.

The Bank of Japan on Thursday maintained short-term interest rates at minus 0.1% and its target for the 10-year Japanese government bond yield at around zero.

Consumer inflation in Japan reached 3% in August, exceeding the bank’s 2% target for the fifth straight month. It is still much milder than in the U.S., where inflation remains above 8%.

Get Breaking Stock Alerts

Stay informed of the biggest news on stocks so you can react before 90% of retail investors.
Email address
We are Spam free & Secure 🙂

The yen’s recent weakness has inflated import prices because Japan depends largely on imports for food and energy. Their prices are already rising due to the Ukraine war and global supply shortages.

Japanese officials have stepped up verbal intervention on the currency this month. Finance Minister Shunichi Suzuki said Tokyo wasn’t ruling out any steps to stop the yen’s fall, including government intervention to sell dollars and buy yen.

However, BOJ Gov. Haruhiko Kuroda has said he doesn’t see monetary tightening as a good way to stabilize the yen. BOJ officials believe Japan’s current inflation is unlikely to last long. Kuroda recently said inflation is likely to go back down to 1.5% in 2023.

Kuroda and other policy board members have said Japan needs easy monetary policy because its economy is still recovering from the pandemic and wage growth remains sluggish.

Written By

Click to comment

Leave a Reply

Your email address will not be published.

Related Articles

Breaking

Selling water in a can appears to be working for Liquid Death, a three-year old environmentally conscious startup that just secured another funding round...

Breaking

“We are assuming a highly stressed situation during the coming winter.” That was Hendrik Neumann, chief technical officer of German electricity grid operator Amprion,...

Breaking

The British pound rose and gilt yields fell a second day after reports that U.K. Chancellor Kwasi Kwarteng will publish debt-reducing plans early, a...

Breaking

Although Kim Kardashian neither admitted to nor denied allegations brought by the Securities and Exchange Commission, the reality-TV personality’s $1.26 million fine for failing...

Get Breaking Stock Alerts

Stay informed of the biggest news on stocks so you can react before 90% of retail investors.
Email address
We are Spam free & Secure :)

Get Breaking Stock Alerts

Email address

Get Breaking Stock Alerts

Stay informed of the biggest news on stocks so you can react before 90% of retail investors.
Email address