The Bank of Japan left unchanged the main parameters of monetary policy (MPC) at the end of the two-day meeting on Friday.

Short-term interest rate on deposits of commercial banks in the Central Bank remained at minus 0.1% per annum, the target yield of ten-year government bonds – about zero, according to the statement of the Japanese Central Bank, distributed after the meeting.

This coincided with the expectations of most analysts.

At the same time, the Bank of Japan raised the forecast for inflation for the current fiscal year, which will end in March 2023. Consumer prices excluding fresh food are now expected to rise by 2.9%, not 2.3% as estimated in July. The central bank’s inflation target is 2%.

Inflation over the next two fiscal years is expected to be around 1.6%.

The GDP growth forecast for this fiscal year was downgraded to 2% from the previously expected 2.4%. The country’s economy will grow by 1.9% next fiscal year (previously expected 2%) and then by 1.5%, the Central Bank forecasts.