日本 - 利率

Bank of Japan would not hesitate to ease monetary policy further if necessary in order to maintain momentum toward 2 percent inflation target, Governor Haruhiko Kuroda said in a speech. He added that consumer inflation would accelerate toward the target, amid positive output gap and rises in inflation expectations, while it would be affected by falls in oil prices for the time being.

The Bank of Japan held its key short-term interest rate at -0.1 percent during its December meeting, and kept the target for the 10-year Japanese government bond yield at around 0 percent. Policymakers also maintained its upbeat assessment of the economy, despite a consumption tax hike in October, while offered weaker views on exports, production and business sentiment mainly due to the impact of natural disasters and sluggish demand from overseas economies.

The Bank of Japan, at present, considers that downside risks to economic activity and prices, mainly regarding developments in the global economy, require the most attention, the central bank board member Masayoshi Amamiya said in a speech. "If there's a greater possibility that Japan could lose momentum toward achieving our price target, we won't hesitate to take additional easing measures," he added. Amamiya also viewed that private consumption and business spending may slightly weaken amid a slowdown in global economy and after October's sales tax hike.

The current low interest rates in Japan were caused by deflationary monetary policy in the past and the only way out is to maintain the current accommodative monetary policy in order to achieve sustained expansion of economic activity while wait for prices and interest rates to rise, Bank of Japan board member Yutaka Harada said in a speech. " If the Bank were to raise interest rates now, this would revive the deflationary mindset and consequently further delay increases in prices and interest rates," he added.

Bank of Japan would only consider expanding stimulus if overseas risks triggered a financial crisis, not just a moderate economic slowdown, board member Makoto Sakurai said in a speech. However, the central bank should avoid rushing into action if the hit from slowing global demand is moderate, given the rising cost of prolonged ultra-low interest rates such as the strain they inflict on financial institutions’ profits, he added. “If there’s a crisis that could disrupt Japan’s financial system ... a bold policy response is necessary."

The Bank of Japan left its key short-term interest rate unchanged at -0.1 percent during its October meeting, while giving a stronger signal it may cut interest rates in the near future to support growth. The decision came in hours after the Federal Reserve lowered rates for the third time this year but signaled a pause in further easing. Policymakers also kept the target for the 10-year Japanese government bond yield at around zero percent.