Bank of Japan Monetary Policy Decision - 29 April 2024

Kept powder dry on interest rate but raised its inflation forecasts

Status quo as expected. The Bank of Japan (BoJ) kept its interest rate unchanged and continues to hold off on any further increases to its overnight call rate (OCR) owing to significant uncertainties surrounding firms' wage- and price-setting behavior. It is notable that while the Bank raised its 2024 inflation target, it concurrently downgraded its GDP growth forecast.

Unanimous vote on guideline for market operations
The short-term policy interest rate: the bank maintained the OCR in a range of 0.0 – 0.1%.
▪ To achieve this guideline, the BoJ will apply an interest rate of 0.1% to deposits held by financial institutions at the Bank.