News On Japan

BOJ to keep interest rates unchanged

Nov 01 (NHK) - The Bank of Japan decided to keep short-term interest rates unchanged in its two-day policy meeting that ended on Thursday.

The central bank said it will maintain the current monetary policy with the key interest rate steady at around 0.25 percent.

Policymakers apparently judged that for now they will keep an eye on wage and price trends as well as the future of the US economy ahead of the presidential election.

The BOJ also released its quarterly consumer inflation report. It maintains its forecast of 2.5 percent for fiscal 2024, which started in April. But it downgraded its outlook for the next fiscal year to 1.9 percent, compared to the July prediction of 2.1 percent.

The BOJ cited the recent decline in crude-oil prices as a major factor.

The bank expects 1.9 percent for fiscal 2026 as well.

The figures represent median projections from BOJ policymakers for the consumer price index, which excludes fresh food.

The bank says the CPI will likely be at a level consistent with its 2-percent stability target in the second half of the fiscal 2024 to 2026 projection period.

BOJ Governor Ueda Kazuo said after the meeting that if the outlook for economic activity and prices is realized, the bank will accordingly continue to raise the policy interest rate and adjust the degree of monetary accommodation.

Ueda said: "We have no prejudgment on the timing of rate hikes. We will make policy decisions by updating the assessment and outlook for prices based on various data and information available at the time of each board meeting."

Ueda also touched on the US economy. He said new risks could emerge, depending on the policies of a new president, even if wages and consumption remain strong for the time being.

He added that BOJ policymakers will check those risks at future meetings.

Some market players believe that political uncertainty in Japan following the Lower House election will make it difficult for the BOJ to raise the benchmark interest rate in the future. The ruling coalition lost its majority while the opposition saw significant gains.

News On Japan
POPULAR NEWS

A suspicious object feared to be explosive was discovered at a high school in Sapporo on the afternoon of November 22nd, causing temporary chaos. The object was found to have been brought to the school by one of its students.

China says it will resume allowing visa-free visits by Japanese nationals on short-term trips from the end of this month. (NHK)

Japan is facing a deepening crisis of poverty and inequality, with rising reports of 'invisible homeless' individuals and growing economic hardships among the population. Discussions over reforms to the country's tax and welfare systems have taken center stage, as policymakers grapple with how to provide meaningful support.

A special lighting ceremony was held on November 20th at Ueno Toshogu Shrine, located in Ueno Park, Taito Ward, Tokyo. The event featured a unique lighting design created by renowned lighting designer Motoko Ishii.

A Japanese pharmaceutical company has announced the successful commercialization of fiber made from silk produced by bagworms.

MEDIA CHANNELS
         

MORE Business NEWS

Struggling Japanese automaker Nissan Motor says about 1,000 of its employees in the United States have accepted early retirement offers. That figure represents 6 percent of the firm's US workforce. (NHK)

The Japanese government plans to incorporate securing copper mine interests into its upcoming economic measures, according to a report by TV Tokyo. Copper, an essential material for electric vehicles (EVs), semiconductors, and data centers, faces increasing global demand, raising concerns over supply shortages.

This year's bottles of Beaujolais Nouveau have hit store shelves across Japan. And in some more good news for wine drinkers, many retailers and importers have kept prices unchanged despite the weak yen. (NHK)

Japanese semiconductor maker Kioxia Holdings is expected to be listed on the Tokyo Stock Exchange next month after years of postponement. (NHK)

The iconic Osaka Marubiru in Umeda, closed last year due to aging, will be replaced with a new 192-meter skyscraper, the tallest in the Osaka Station area.

The average price for a newly built condominium in Tokyo’s 23 wards has remained above 100 million yen for six consecutive months.

The average transaction price of newly harvested rice between agricultural cooperatives and wholesalers reached a record high for the second consecutive month in October. The price of unpolished rice was 23,820 yen per 60 kilograms.

NVIDIA has thrown its weight behind Sakana AI, a Tokyo-based startup rapidly gaining traction in the booming generative AI field. Since ChatGPT's debut in November 2022, industry giants like Google and Meta have entered the fray, intensifying the competitive landscape.