The Bank of Japan also announced an inflation target as "a positive range of 2 percent or lower in terms of the year-on-year rate of change in the consumer price index (CPI) and, more specifically, set a goal at 1 percent for the time being". The Bank noted that the 2 percent target is what it considers "The price stability goal in the medium to long term". The inflation target mirrors that announced by the US Federal Reserve in its January communications package.
At its January meeting the Bank of Japan held policy settings unchanged, after it expanded its asset purchase program in October by another 5 trillion yen to 55 trillion yen, and previously announced additions to its quantitative easing program during its August meeting. The Bank had previously changed its asset purchase program in March last year, when it added a further 5 trillion yen to its target. Japan reported annual headline consumer price inflation of -0.2% in December, compared to 0% in October and September, 0.2% in both August, July and June, and 0.3% in both May and April.
The Bank of Japan is forecasting real GDP growth of -0.4 to -0.3% in fiscal 2011, 1.8-2.1% in fiscal 2012, and 1.4-1.7% in fiscal 2013. Meanwhile, nominal quarterly GDP growth in Japan was recorded at -0.6% in December, 1.7% in September, -0.4% in June and -1.8% in March. The Japanese Yen (JPY) has gained around 7% against the US dollar over the past year; the USDJPY exchange rate last traded around 78. While the Nikkei 225 has fallen -16% over the past year; last trading around 9,052.
At its January meeting the Bank of Japan held policy settings unchanged, after it expanded its asset purchase program in October by another 5 trillion yen to 55 trillion yen, and previously announced additions to its quantitative easing program during its August meeting. The Bank had previously changed its asset purchase program in March last year, when it added a further 5 trillion yen to its target. Japan reported annual headline consumer price inflation of -0.2% in December, compared to 0% in October and September, 0.2% in both August, July and June, and 0.3% in both May and April.
The Bank of Japan is forecasting real GDP growth of -0.4 to -0.3% in fiscal 2011, 1.8-2.1% in fiscal 2012, and 1.4-1.7% in fiscal 2013. Meanwhile, nominal quarterly GDP growth in Japan was recorded at -0.6% in December, 1.7% in September, -0.4% in June and -1.8% in March. The Japanese Yen (JPY) has gained around 7% against the US dollar over the past year; the USDJPY exchange rate last traded around 78. While the Nikkei 225 has fallen -16% over the past year; last trading around 9,052.
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