Central Bank of Japan Chooses to Market ETFs and J-REITs
Bank of Japan Maintains Policy Rate, Indicating Cautious Approach to Monetary Tightening
The Bank of Japan (BOJ) has decided to maintain its policy rate at 0.5% for the fifth consecutive policy-setting meeting, despite calls from some members for a rate hike.
At the latest Policy Board meeting, members Hajime Takata and Naoki Tamura voted against maintaining the policy rate, arguing for a rate hike. However, their views were not supported by the majority, and the decision was made by a unanimous vote.
The BOJ has kept the policy of guiding the unsecured overnight call rate, Japan's benchmark short-term policy rate, unchanged since its decision to sell exchange-traded funds (ETFs) and Japanese real estate investment trusts (J-REITs) that it had previously purchased as part of its monetary easing program. This decision, which was made by a vote of seven to two, marks another step toward normalizing monetary policy by the BOJ.
The sale of ETFs and J-REITs indicates a continuation of the BOJ's efforts to normalize monetary policy. The BOJ has not altered its monetary policy regarding ETFs and J-REITs since its decision to sell them.
The decision to maintain the policy rate contrasts with the views of members Takata and Tamura, who advocated for a rate hike. The BOJ's decision suggests a cautious approach to further monetary tightening, indicating that the central bank is carefully considering the impact of any changes on the Japanese economy.
The BOJ's decision to maintain the policy rate also contrasts with some members' calls for a rate hike, indicating a divided Policy Board. Despite this division, the BOJ's decision to maintain the policy rate indicates a continuation of its efforts to normalize monetary policy.
It is important to note that the BOJ's policy rate has not been increased since January, and it has not raised the policy interest rate since it was increased from 0.25% to 0.5% in January. The two members of the Bank of Japan who voted against maintaining the control of the unsecured overnight call rate at the latest Policy Board meeting and argued for an interest rate hike are not specifically named in the provided search results.
In conclusion, the Bank of Japan has decided to maintain its policy rate at 0.5%, despite calls for a rate hike from some members. This decision indicates a cautious approach to further monetary tightening and a continuation of the BOJ's efforts to normalize monetary policy. The sale of ETFs and J-REITs marks another step in this process.
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