The BOJ – Bank of Japan, the central bank of Japan led by Haruhiko Kuroda – has announced that it has confirmed the target of short-term interest rates at -0.1%, and the target of 10-year government bond rates around to zero.
The central bank revised GDP and inflation forecasts at the same time.
For the fiscal year 2021/22 it now expects inflation measured by the core component of the consumer price index equal to zero, compared to the + 0.6% expected in July.
For the fiscal year 2022/2023, core inflation is expected to rise by 0.9%, as in July.
For the fiscal year 2023/2024, the estimates are for core inflation at 1%, as in July.
The BoJ also lowered its real GDP outlook for fiscal year 2021/22 from the + 3.8% previously expected in July to + 3.4%.
For the fiscal year 2022/2023, the estimates have been revised upwards from the previous increase of 2.7% to + 2.9%.
For the fiscal year 2023/24 the forecasts are for a real GDP growth of 1.3%, as in the July outlook.