Bank of Japan July 2020 policy decision

Maintains the same policy for:

  • short-term interest rate target at -0.1%
  • 10-year JGB yield target at around 0%


  • will take additional easing steps without hesitation as needed, with eye on impact of pandemic on economy
  • keeps forward guidance on rates unchanged, says it expects short-, long-term policy rates to remain at current or lower levels
  • says Japan's economy likely to improve gradually from latter half of this year
  • says pace of any Japan economic recovery will be moderate
  • says Japan's economy will further improve once impact of pandemic subsides globally
  • says inflation likely to gradually accelerate as impact of oil price falls fades
  • says outlook for Japan's economy, prices extremely uncertain as they could change depending on pandemic fallout

From the BOJ Quarterly report

  • risks to Japan's economic, price outlook skewed to downside
  • inflation expectations hovering on weak note
  • corporate, household activity remains restrained due to caution over pandemic
  • global economy likely to recover from big slump but pace of recovery will be moderate
  • Japan exports likely to increase gradually as overseas economy recovers

Yen doing pretty much nothing, which is also expected.

Full text of the:


Still to come, Bank of Japan Governor Kuroda news conference at 0630GMT