BoJ outlook: on the way to success
As expected, the Bank of Japan on Thursday made no changes to its monetary policy, maintaining the agressive policy easing launched in April. The regulator has also released a semi-annual report, saying the QE programme will continue until a 2% inflation target is achieved.
Acording to the BoJ, the policy measures taken prove to be highly effective. The bank has reviewed the 2014/15 GDP growth forecast from 1.3% to 1.5%. Inflation is expected to reach the 2% target around end of fiscal 2014/15 year. Core CPI is expected to come at +1.3% in fiscal 2014/15 and at +1.9% in fiscal 2015/16. The BoJ says the monetary policy can be adjusted if needed.
The regulator underlines that the risks to Japanese economy and price outlook are balanced despite the overseas uncertainty.