The Bank of Japan intends to maintain negative interest rates until the spring of 2020
Was published today a predictable solution to the Bank of Japan about keeping interest rates in negative territory at the level of -0.1%. In principle, this was nothing new, however, in an accompanying statement, the Bank of Japan said that the regulator intends to maintain negative interest rates at least until the spring of 2020. Earlier, the Bank of Japan has not even identified the expected timing of the end of ultra-loose monetary policy received worldwide the name “kuroganeya” on behalf of the head of the Bank of Japan.
However, we don’t “kuroganeya” in 2020 – the big question, as the same comments accompanying the caveat that the regulator expects inflation of consumer prices in Japan at level below the target level of 2% until 2022.
Japan’s financial regulator followed its own way, different from the rest of the world, because of this on world markets periodically there are rumors that the new world crisis begin with the collapse of the Japanese yen and the Japanese economy. But still, at least since the return to power in 2012, Prime Minister Shinzo Abe, the Japanese economy and the yen, in particular, quite well afloat, although the rate of growth of the real sector is clearly lost.
After the announcement of the expected decision of the Bank of Japan the yen against the dollar rose by 0.35%. We see in the near future the dynamics of the pair USD/JPY at levels to 111,6-112.2 yen per dollar.
______________________ Natalia Milchakova,
Deputy Director of information-analytical center,