The BoJ maintains its monetary policy against the global trend

At the end of its two-day meeting on monetary policy, the Japanese central bank decided, by 7 votes in favor and 2 against, to maintain its reference interest rate in the short and medium term of -0.1% for deposits of banks, and a control of the yield curve to maintain around 0% long-term rates.

The opt entity, in addition, to continue with its program of massive purchase of assets "in a flexible way" so that the remainder is increased at an annual rate of 80 billion yen (about 670,000 million euros 740,000 million dollars) and reach, at an unspecified time, its goal of placing inflation at 2%.

The BoJ acknowledged that the rise in the consumer price index (CPI) of the country is currently "around 0.5%", but despite this, its inflation forecast remains "more or less unchanged."

The decision of the BoJ was adopted hours after the Federal Reserve of the United States (Fed) announced a new interest rate cut in response to its long-standing trade dispute with China, and after the European Central Bank (ECB) cut the interest rates for the first time in more than three years last week.

The Japanese central bank indicated in its report that it intends to continue with the stimulus program adopted in 2013 "as long as necessary" to pursue its elusive objective, and to continue "expanding its monetary base until the interannual increase in the CPI exceeds 2% and stay stably. "

The reiter entity that plans to maintain its current policy of negative rates "at least until the spring of 2020, taking into account the uncertainties about economic activity and prices, including the evolution of foreign economies and the effects of the expected rise in VAT "in the country as of October 1.

The BoJ also noted that, despite being affected by the economic slowdown in other countries, it is expected that the Japanese economy will follow "a trend of moderate expansion."

Some analysts hoped that the BoJ would follow the trend of global changes, while others considered that it would not be carried away by the current in order to play their cards in case Japan's economy was seriously affected by the VAT hike or Damaged by global trade conflicts.