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Japan’s central bank, the BOJ, has kept its interest rate in negative territory (NIRP) at -0.1%. During Governor Kuroda’s press conference, after the announcement was broadcast, the BOJ downgraded its assessment of: exports, factory output and its trading partners’ economies. The negative assessment of the domestic economy was widely expected, as a consequence of a raft of weak data, published during the past month.

Japan’s GDP growth is currently at 0.30% annually, whilst inflation is at 0.20%. Getting inflation up to 2%, through an ultra loose monetary policy designed to spur growth, appears to have failed as a policy. BOJ Governor Kuroda also warned that global economic issues, are making it harder for Japan to thrive:

“It is true Japan’s exports and output are being affected by lean overseas growth. On the other hand, domestic demand continues to grow. We maintain our baseline view that the economy is expanding moderately. It is likely to take longer to achieve our price target.How...

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