Tokyo The Japanese central bank continues to stick to its loose monetary policy. This was decided by the Bank of Japan (BoJ) on Thursday after two days of deliberations. Thus, the currency guardians of the world's third-largest economy decided differently than their counterparts in the US and Europe. These have recently eased monetary policy in the face of global economic uncertainty. Thus, the US Federal Reserve had decided the previous day to cut the key interest rate by 0.25 percentage points to a range of 1.75 to 2.00 percent in order to prevent a slump in the US economy. The European Central Bank also tightened its already ultra-loose monetary policy last week.
Japanese commercial banks can continue to get almost as much money from the central bank as the BoJ's decision. Loans for business and consumer investment should remain cheap. The background is persistently low inflation in Japan and the uncertainties surrounding the global economy, which is being burdened by trade conflicts such as those between the US and China.
More: Japan is burdening a record national debt. Nevertheless, Premier Abe operates an extremely expansionary fiscal policy. How long will that be okay?
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