In its March monetary policy statement, the Bank of Japan (BoJ) highlighted the following about the economic and inflation outlook.
BoJ leaves unchanged forward guidance on interest rates.
Japan’s economy picking up.
Japan’s economy expected to recover as impact of pandemic, supply constraints fade.
Exports and output moving sideways, capex and consumption increasingly moderately.
Core consumer inflation moving around 4%.
Inflation expectations heightening.
Will keep balance of commercial paper holdings around 2 trln yen.
Will purchase corporate bonds at about the same pace as before covid so amount outstanding will gradually return to pre-pandemic level of around 3 trln yen.
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