Central Banks

Bank of Japan Pushes Back Inflation Target Due to Trade War

WATCH: Former BOJ Deputy Governor Masazumi Wakatabe and Amundi’s Hiromi Ishihara react to the decision.Source: Bloomberg
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The Bank of Japan pushed back the timing for when it expects to reach its inflation target and slashed its growth forecasts as the global trade war initiated by US President Donald Trump darkens the economic outlook.

Governor Kazuo Ueda’s board voted unanimously to maintain the central bank’s policy rate at 0.5% at the end of the two-day gathering, according to a statement, as expected by all 54 economists surveyed by Bloomberg. The forecast changes triggered a drop in the yen and 10-year yields, as traders pushed back rate hike views.