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Stock impact report

Japan's central bank cuts inflation view, narrowing stimulus-exit path [Reuters]

Mitsubishi UFJ Financial Group, Inc. (MUFG) 
Company Research Source: Reuters
Japan's central bank cuts inflation view, narrowing stimulus-exit path | Reuters 5 Min Read TOKYO (Reuters) - The Bank of Japan downgraded its assessment on inflation and its governor stressed his resolve to keep the money spigot wide open, reinforcing views Japan will lag well behind its U.S. and European peers in dialing back crisis-mode policies. BOJ Governor Haruhiko Kuroda said structural changes in the economy, such as rising service-sector productivity, may be holding back inflation, signaling the central bank will look more closely into factors curbing prices at next month’s rate review. “Japan’s economy is seeing labor markets tighten and the output gap improving, but prices aren’t rising much. As such, it’s most appropriate to patiently maintain our powerful monetary easing,” Kuroda told a news conference. As widely expected, the BOJ maintained its ultra-loose policy on Friday, keeping its short-term interest rate target at minus 0.1 percent and a pledge to guide 10-year gov Show less Read more
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