The Bank of Japan has clarified its policy of maintaining large-scale monetary easing measures to support the economy and strongly restraining the rise in long-term interest rates.
However, as the yen depreciates further and there are concerns that it will put pressure on households and corporate profits, the BOJ's monetary policy management will continue to be difficult to steer.
At the monetary policy meeting held until the 28th, the Bank of Japan maintained a large-scale monetary easing policy and clarified its policy to curb the rise in long-term interest rates with strong measures.
In the foreign exchange market, the yen selling and dollar buying movements, which are expected to widen the interest rate differential between Japan and the United States, have intensified due to the difference in policy with the United States, which is rushing to tighten monetary policy, and the yen exchange rate temporarily plummeted to the 131 yen level. Did.
The depreciation of the yen will be a boost to the performance of exporters, but will push up the prices of imported energy and food products.
The Bank of Japan raises the price outlook for this year to plus 1.9% and expects it to reach the highest level in 30 years except when the consumption tax rate is raised, but says that it will not reach the target of 2% in a stable manner. increase.
The Bank of Japan has a policy of persistently continuing monetary easing to support the economy, but there are concerns that further depreciation of the yen will put pressure on households and corporate profits.
On the other hand, if monetary tightening is turned on, interest rates such as mortgages and loans to companies may rise and the economy may cool down, and interest payments on government bonds may increase, which may affect the national finances.
For this reason, the BOJ's monetary policy management will continue to be difficult to steer.