Bank of Japan ups its language

Thanks;Michael Kitchen
Published ; July 10, 2013, 11:04 p.m. EDT

LOS ANGELES (MarketWatch) — The Bank of Japan left it policy unchanged Thursday, while cutting its inflation and economic forecasts from its April projections but using slightly more upbeat language in its assessment of the economy. The central bank’s median forecast for core inflation in the fiscal year ending in March 2014 eased to a 0.6% rise in prices from a 0.7% rise tipped in April, while the real economic growth estimate slipped to 2.8% from 2.9%. Likewise, for the 2014-15 fiscal year, the core consumer price index was expected to rise 3.3%, down from April’s 3.4% forecast, with growth at 1.3% compared to 1.4% previously. However, the bank also said the economy was “starting to recover moderately” after saying in June that it was “picking up,” and its description of exports went from having “started to pick up” to “have been picking up.” The yen drove higher following the decision, as the dollar USDJPY -0.7001% bought 98.60 yen, down from 99.09 yen ahead of the announcement.

Advertisements