Following the monetary policy meeting held until the 21st, the Bank of Japan's Governor Kuroda will hold a press conference at the Bank of Japan's head office in Nihonbashi Hongokucho, Tokyo, from 3:30 pm.


The BOJ Governor's press conference is held after each meeting.


Along with this meeting, a so-called outlook report, "Economic and Price Outlook," which is compiled every three months, was also released.


At the conference, Governor Kuroda will first explain the decisions made at the meeting and the contents of the outlook report, and then answer the questions from the reporters.



As soon as the press conference begins at 3:30 pm, we will give you a breaking news of President Kuroda's remarks.

Decided to maintain large-scale monetary easing measures

The Bank of Japan decided to "maintain large-scale monetary easing measures" at the monetary policy meeting on the 21st.


Record inflation = The difference between the Bank of Japan and the central banks of Europe and the United States, which are rushing to tighten monetary policy such as raising interest rates in order to curb inflation, has become even more prominent.


The yen has been depreciating for the first time in 24 years against the backdrop of widening interest rate differentials due to differences in monetary policy between Japan and Europe and the United States.


And the rise in energy prices is combined with the depreciation of the yen, and prices are rising in Japan as well.

Raise the outlook for inflation to "2.3%"

On the 21st, the Bank of Japan raised its outlook for inflation this year and 2022 to "2.3%".

The 2% inflation is a level that the Bank of Japan has been unable to achieve in the last 10 years, even though it has reached its target.



Rapid depreciation of the yen and high prices brought about by continuing monetary easing.


Attention will be paid to the remarks of the press conference starting at 3:30 pm on the 21st, as to how Governor Kuroda intends to deal with this annoying problem.


I will give you a breaking news of President Kuroda's remarks.

Why Japan Maintains Monetary Easing

The Bank of Japan has decided to maintain large-scale monetary easing measures.

The Bank of Japan maintained easing as Western central banks rushed to tighten monetary policy.



In Europe and the United States, the inflation rate is high. For example, in the United States, the consumer price index in June increased by 9.1% from the same month of the previous year, which is a record level for the first time in about 40 and a half years.

The aim is to curb inflation by tightening monetary policy by raising interest rates and putting a brake on the economy.

On the other hand, the inflation rate in Japan is about 2%, which is not as high as in Europe and the United States.

The Bank of Japan believes that "the Japanese economy is in the process of recovering from the Korona-ka, and if we now turn to monetary tightening, the economy may cool down and we need to continue easing."


I'm worried that tightening monetary policy could worsen the economy as interest rates on corporate loans and personal mortgages and car loans rise.

Expected inflation and monetary easing

The Bank of Japan has raised its outlook for inflation this year and 2022 to 2.3%.

We are likely to reach our long-term target of 2%, but we will continue to ease monetary policy.



The figure is expected to reach 2%, but the Bank of Japan believes that its contents are different from what it was aiming for.

The current rise in prices is due to soaring prices of raw materials such as energy and grains, and is not accompanied by an increase in demand or wages.

Without this, we believe that it will be a downward factor for the economy through deterioration of corporate profits and a decrease in real household income.

Impact on the yen exchange rate

The Bank of Japan has shown its willingness to maintain monetary easing.

In response, the US and the US are moving to tighten monetary policy, for example, in June, when the US Federal Reserve Board decided to raise interest rates by 0.75%, which is three times the normal rate.

Against this background, long-term interest rates in the United States have risen to around 3%.



On the other hand, in Japan, the Bank of Japan is holding down long-term interest rates to "about 0%", specifically "up to about 0.25%" as part of its monetary easing measures.

With such an interest rate differential, investors will be more profitable if they manage their funds in dollars.


The foreign exchange market fluctuates due to various factors, but in terms of interest rate differentials, there is a view that the situation will continue to be likely to lead to the movement to sell the yen and buy the dollar.