Japanese Central Bank Kept Monetary Policy Unchanged with Positive Projections

The Bank of Japan has greater economic predictions amid its policy meeting result announced on Thursday, however, the policy remained unchanged as it was expected.

The central bank further boosts its assessment, increasing its forecast for real gross domestic product (GDP) for the fiscal year 2017-18 reaching 1.6 percent compared to the previously 1.5 percent estimate in January.

On the other hand, the growth for the core consumer price index (CPI) was lowered with a gauge of 1.4 percent versus 1.5 percent of the same timeframe.

The Japanese yen had a slight adjustment after publishing the result while the US dollar reaches around 111.23 JPY prior the announcement, bearing comparison with 111.16 yen at 11:36 a.m.

The BoJ continued to push through the yield-curve control policy which was proposed since the last meeting in September. It requires the bank to fix its target yield on the benchmark of the 10-year Japanese government bond with zero percent approximately and should keep the reference point within the target line.

In addition to it, the economy of Japan improved, gaining 1.2 annual rates amid Q4, based on the corrected data issued on March, nevertheless, the percentage seems lower than the expected 1.6 percent released in the Reuters poll.