The Bank of Japan also held its monetary policy interest rate unchanged in June this year. Japan reported annual headline consumer price inflation of 0.3% in both May and April, meanwhile core inflation rose 0.6% in April, as Japan finally begins to see some positive inflation figures. The Bank is forecasting real GDP growth of 0.2-0.6% in fiscal 2011, and 2.5-3.0% in fiscal 2012.
Tuesday, July 12, 2011
Bank of Japan Makes no Changes to Policy, Holds Rate at 0.10%
The Bank of Japan held its uncollateralized overnight call rate unchanged at a range of 0 to 0.1% by a unanimous vote. The Bank also made no changes to its other monetary policy tools e.g. the 40 trillion yen asset purchase program. The Bank said in its statement: "Japan's economic activity is picking up with an easing of the supply-side constraints caused by the earthquake disaster. After declining sharply following the earthquake, production has recently shown clear signs of picking up with the easing of supply-side constraints."