Bank of Japan Leaves Ultra-Easy Policy Unchanged; Yen Weakens

The Bank of Japan (BOJ) has maintained its policy rate at -0.1% and its JGB yield target at 0%. The BOJ's statement indicates a commitment to respond nimbly to economic conditions while keeping its economic assessment unchanged. The yen has surpassed the 148 barrier against the dollar, reflecting market reactions. The BOJ emphasizes the need to monitor FX developments and suggests that inflation may cool, despite current CPI figures. The focus remains on cost push inflation and the impact of import prices, which are showing signs of waning.

What policy rate did the BOJ maintain according to the statement?

• 0.0%

• 1.0%

• -0.1%

• 0.5%

What significant level did the yen cross against the dollar?

• 150

• 145

• 148

• 140

How did the BOJ vote on the rate decision?

• 6-3

• 9-0

• 7-2

• 8-1

What is the BOJ's outlook on inflation based on the statement?

• Inflation is expected to rise significantly.

• Inflation might start cooling.

• Inflation will remain unchanged.

• Inflation will decrease sharply.

What is the current focus of the BOJ regarding price changes?

• Demand-pull inflation

• Cost-push inflation

• Stagflation

• Deflationary pressures