Schneider Electric Expands Youth Partnership with Enactus to Drive Inclusive Energy Transition in Egypt    China's Jiangsu Zhengyong to build $85m factory in Egypt's Ain Sokhna: SCZONE    Egyptian pound ticks up vs. US dollar at Thursday's close    Egypt condemns Israeli plan to build 3,400 settler homes in West Bank    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Egypt, Namibia explore closer pharmaceutical cooperation    Egypt, China ink $1bn agreement for Sailun tire plant in SCZONE    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egypt's Electricity Minister discusses progress on Greece power link    Egypt's FM discusses Gaza, bilateral ties in calls with Saudi, South African counterparts    Egypt prepares to tackle seasonal air pollution in Nile Delta    27 Western countries issue joint call for unimpeded aid access to Gaza    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Colombia discuss medical support for Palestinians injured in Gaza    Australia to recognise Palestinian state in September, New Zealand to decide    Egypt, Huawei explore healthcare digital transformation cooperation    Global matcha market to surpass $7bn by 2030: Nutrition expert    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt, Uganda strengthen water cooperation, address Nile governance    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Korean Cultural Centre in Cairo launches folk painting workshop    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Bank of Japan keeps policy unchanged; rates at -0.1%
Published in Amwal Al Ghad on 01 - 11 - 2016

The Bank of Japan (BOJ) held off Tuesday on expanding stimulus, despite pushing back the time frame for hitting its 2 percent inflation target, showing that it will stand pat unless a severe market shock threatens to derail a fragile recovery.
In a widely expected move, the BOJ maintained the 0.1 percent interest it charges for a portion of excess reserves that financial institutions park with the central bank. At the two-day policy meeting that ended unusually quickly on Tuesday, it also left unchanged its 10-year government bond yield target around zero percent.
In a statement released with the decision, the BOJ maintained its forecast that the economy was likely to expand moderately, although weaknesses would remain in exports and trade, Reuters reported.. Medium-to-long-term expectations on growth were sensitive to efforts by the government to tacking Japan's aging population and undertake institutional reforms, it said.
The central bank said that the risk of its policies destabilizing the financial system was not big at present, although the prolonged low-interest rate environment could weigh on banks' profits, Reuters reported.
While the BOJ no longer targets the pace of money printing, it maintained a pledge to keep buying government bonds so the balance of its holdings increases at an annual pace of 80 trillion yen.
At a quarterly review of its forecasts, the BOJ cut its core consumer inflation forecast for the next fiscal year ending in March 2018 to 1.5 percent from 1.7 percent projected in July.
Japan's core consumer prices fell for a seventh straight month and household spending slumped in September, endorsing the central bank's view that it will take some time for inflation to accelerate to its 2 percent target as the economy stagnates.
The BOJ said it was particularly concerned by the "dull response" in some services prices, despite the tight job market, and that falls in housing rentals had accelerated, possibly constraining consumer price inflation.
Desperate to stimulate growth, encourage capital investment and reverse price declines, the Bank of Japan has embraced negative interest rates, bought up massive amounts of bonds and snapped up riskier assets such as exchange-traded funds.
But a Reuters survey of Japanese companies in September found that few expected the central bank's aggressive monetary stimulus to meet its goal of spurring inflation, with firms citing negative fallout from the program more than positive effects.
Japan's economy expanded for the second straight quarter in April-June but many analysts expect growth to remain modest for the rest of this year, with exports and output weak on sluggish global demand. Slow wage growth has also hurt consumption, further undermining the chance of a strong near-term revival in the world's third-largest economy.
Source: Reuters


Clic here to read the story from its source.