Mizuho DKB Brokerage Say Bank of Japan Expects Economic Growth
TOKYO, Jan. 26, 2018 /PRNewswire/ - Mizuho DKB Brokerage has reported on the Bank of Japan's Monetary Policy as the members noted a moderate economic growth and anticipated that it would continue in this direction.
Mizuho DKB Brokerage research and analysis department said The Bank will make policy adjustments as appropriate, taking account of developments in economic activity and prices as well as financial conditions, with a view to maintaining the momentum toward achieving the price stability target.
The central bank left the short-term interest rate unchanged at -0.1%, and the 10-year yield target at about zero percent. The MPB also voted to keep the monetary easing at the current level until the 2% inflation target is reached. BOJ expects the inflation target to be touched by the fiscal year 2019. The bank left the target of raising the amount of outstanding JGB holdings at an annual pace of 80 trillion Yen.
Mizuho DKB Brokerage has noted that private consumption growth and business fixed investment went up thanks to the improving company profits and business sentiment.
At the end of the meeting, BOJ Governor Haruhiko Kuroda said that the domestic economy still needed the ultra-easy policy, mainly because of weak inflation.
Michael Green who is the head of Corporate Trading at Mizuho DKB Brokerage said that despite the moderate economic growth in Japan, the inflation target is not that close.
"The Japanese economy noted seven positive quarters in a row. Unemployment fell 2.7%, the lowest level since 1993, and the job opening to application ratio the highest since 1974. Besides, Nikkei 225 is demonstrating an impressive performance. These are all good signs Japan is in the right direction," he said.
"However, the inflation still remains weak, suggesting that the central bank will maintain its aggressive monetary easing," added Chris Hunter, Director of Corporate Equities at Mizuho DKB Brokerage.
About Mizuho DKB Brokerage: Mizuho DKB Brokerage (MDB) is a leading global wealth management company that services the needs of private individuals and corporate institutions. Headquartered in Tokyo, Japan since 2004 with a research department situated in Shanghai, Mizuho DKB Brokerage has accumulated over $6.7 billion U.S Dollars of assets under management.
SOURCE Mizuho DKB Brokerage
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