Bank of Japan pledges to keep rates super-low for another year
But one economist says the fact that the BOJ has not ramped up asset purchases shows it is aware of the growing side-effects of prolonged easing
Tokyo — The Bank of Japan (BOJ) put a timeframe on its forward guidance for the first time by telling investors that it will keep interest rates at super-low levels for at least one more year, in a move to dispel any doubt over its commitment to ultra-loose policies. The BOJ held its monetary policy steady at a rate review on Thursday, but governor Haruhiko Kuroda said rates could be kept ultra-low even longer, as weaker global demand and China-US trade tensions were taking a toll on the export-reliant economy. “Global economic uncertainties have drawn attention, so we wanted to clarify that we will keep rates low for a very long time,” Kuroda told a briefing. “Current very low rates will be maintained at least until the spring of 2020, he said. “the timeframe could be much longer than that” if the economy weakens, he added. The BOJ's dovish message puts it in line with the Federal Reserve and the European Central Bank, which have been forced to pause efforts to scale back crisis-mo...
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