At the monetary policy meeting that will be held from the 20th, the Bank of Japan will discuss raising the price outlook for this year to the target of 2% in response to the soaring raw material prices.
On the other hand, the Bank of Japan is going to maintain large-scale monetary easing in order to support the economy.
The Bank of Japan will hold a monetary policy meeting for two days from the 20th to discuss the current state of the economy and the outlook for the economy and prices.
Regarding prices, as raw material prices such as crude oil and wheat continue to rise due to Russia's invasion of Ukraine, the outlook for the rate of price increase this year will be raised from the + 1.9% shown in April last time. I will discuss it at.
If the outlook is raised, it will reach the BOJ's target of 2%, but the BOJ's current rise in prices due to soaring raw material prices is not accompanied by increases in wages and demand, and households It is said that it will be a downward factor for the economy through a decrease in real income and a deterioration in corporate profits.
Governor Kuroda has expressed his intention to continue large-scale monetary easing in order to support the economy toward stable inflation, and this policy is expected to be confirmed at the meeting.
At the meeting, we will also discuss the rapid depreciation of the yen against the backdrop of interest rate differentials between Japan and the United States, and the impact of the re-expansion of the new corona on the economy and prices.