BOJ: Will keep rates at very low levels at least through spring 2020

The Bank of Japan (BOJ) will keep both short term and long term rates at very low levels, at least through spring 2020 and will continue expanding monetary base until consumer inflation stably exceeds 2%, BOJ’s Governor Kuroda said on Tuesday, according to Reuters.  

Key quotes (Source: Reuters)

Japan’s economy has been expanding moderately as a trend, though exports, output, and business sentiment have been affected by the overseas slowdown.

Japan’s economy likely to continue expanding moderately as a trend, though affected by overseas slowdown for the time being.

Consumer inflation is moving around 0.5%.

Consumer inflation to accelerate gradually towards 2% on the positive output gap and rises in inflation expectations.

Japan’s financial system is maintaining stability.

BOJ  will maintain QQE with yield curve control for as long as needed to achieve 2% inflation in a stable manner.

BOJ will continue expanding monetary base until consumer inflation stably exceeds 2%.

BOJ will keep short-, long-term rates at current very low levels for an extended period, at least through around spring 2020.

Need to pay closer attention to the chance that momentum towards achieving price target will be lost.

Won’t hesitate to take additional easing steps if risks grow that momentum towards achieving price target will be lost.

To monitor the effects of natural disaster on the real economy, maintain functioning and smooth settlement of funds.