At its press conference following the monetary policy meeting, the Bank of Japan maintained its policy of guiding the uncollateralized overnight call rate to around 0.5% and left the policy rate unchanged. The decision was approved with Commissioner Takada's (高田) support, while Commissioner Tamura's (田村) proposal to raise rates was rejected. The Bank released its Outlook Report.
The Bank of Japan maintained its policy of guiding the uncollateralized overnight call rate to around 0.5% and decided by majority vote to maintain its guidelines for money market operations.
Commissioner Tamura (田村) submitted a proposal to raise the policy rate to around 0.75% in order to move it closer to the neutral rate, taking into account upside risks to prices, but the proposal was rejected by a majority vote against it.
Today, the Bank released its Outlook Report and explained current conditions and the outlook. It indicated that the economy is recovering moderately, although some weakness remains.
Looking ahead, the Bank said that attention should be paid to the earnings trends of Japanese companies as the economy is affected by external factors, including a slowdown in overseas economies, and presented its outlook for the future.