Bank of Japan downgrades exports outlook

Business | 15 Mar 2019 12:17 pm

The Bank of Japan has decided to maintain its massive easing policy as it continues to pursue its elusive 2-percent inflation target. At the same time, it downgraded its assessment on exports and factory output on the back of a slowdown in the Chinese economy.

BOJ officials made the announcement after wrapping up a 2-day meeting today, NHK reports.

They agreed the central bank will continue buying government bonds with the aim of keeping the yield of the benchmark 10-year issue at around zero percent.

The target for short-term interest rate will remain at minus 0.1 percent. That means commercial banks will continue to pay interest to the central bank.

They also repeated a pledge to keep rates at extremely low levels for an extended period of time.

Policymakers kept their assessment that Japan's economy is expanding moderately but they expressed some caution about output and exports. They say both have shown some weakness.

They had said at their previous meetings that both were "on an increasing trend".

The changes come amid China's economic slowdown, and stalling global shipments of smartphones.

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