(menafn – ecpulse)
The Bank of Japan left its benchmark interest rate unchanged between zero and 0.10%, also left stimulus programs, as BOJ might add stimulus programs during the upcoming period.
Bank of Japan decided today to keep ots benchmark interest rate unchanged at zero level between 0.00% and 0.10% to meet analysts’ expectations.
On the other side BOJ keeps the credit program levels steady at 35 trillion Yen, also did not change the asset purchase program at 30 trillion Yen without raising the incentive plans during the current period, while BOJ announced that Japanese economy sees signs of recovery.
Meanwhile, exporters were benefited from the recent balance of Yen’s value with the beginning of the nation’s recovery, where it’s positively affected on Asian stock markets, while the BOJ is waiting for further improvements.
Moreover, the improvement in total trade balance in February supported today’s decision of keeping the interest rate unchanged, where trade balance recorded surplus with 1177.8 billion Yen compared with previous deficit of 437.3 Yen.
Japanese economy is facing deflation period which push the monetary policy makers to raise the inflation rate and support exports in order to boost the Yen, also to support Japanese companies to regain its losses after the incline of Yen’s value and Thailand’s flooding.
Finally, the image of the Japanese economy is not clear yet, adding that it is expected to raise stimulus programs during the upcoming period.