BOJ makes no monetary policy change, gives weak inflation estimate

The Bank of Japan (BOJ) made no change in its monetary policy settings on Thursday. The central bank also slashed its consumer inflation forecast for the year until March 2022.

During the two-day rate review that ended on Thursday, the BOJ kept its short-term interest rate target at -0.1% and its 10-year bond yields at about 0%.

The central bank estimated inflation to be at 0%, lower than the initial 0.6% forecast. The revision came after cellphone free cuts and a change in the price index’s base year.

The economic growth forecast was also trimmed due to weak consumption and supply disruptions’ blow to factory output.

The newly provided estimates showed how the BOJ was lagging behind other central banks in reversing its crisis-mode measures.

Masamichi Adachi, chief economist at UBS Securities, said the BOJ will continue easing its policy under yield curve control until under the terms of Governor Kuroda and his two deputies, which will end in 2023.