Bank of Japan meeting —

At its 18 January 2022 meeting, the Bank of Japan held its policy rate at -0.10%. The decision passed 8-1. Kataoka dissented, preferring a cut.

Decision

hold — -0.10% to -0.10%

Vote: 8-1

Dissenters

  • Kataoka — preferred cut

Key passages

The short-term policy interest rate: The Bank will apply a negative interest rate of minus 0.1 percent to the Policy-Rate Balances in current accounts held by financial institutions at the Bank. The long-term interest rate: The Bank will purchase a necessary amount of Japanese government bonds (JGBs) without setting an upper limit so that 10-year JGB yields will remain at around zero percent.

Policy rates and YCC unchanged; no surprise.

It will continue expanding the monetary base until the year-on-year rate of increase in the observed consumer price index (CPI, all items less fresh food) exceeds 2 percent and stays above the target in a stable manner.

Reaffirms inflation threshold for monetary base expansion; no shift.

Meeting documents

Background reading

Next meeting · Open the full decision workspace

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