Japan bank stands pat on policy, eyes more stimulus steps
The Bank of Japan (BOJ) opted to keep its monetary policy unchanged at the conclusion of a two-day policy setting meeting, though the central bank underscored its stance that it stood ready to cut rates if necessary. In a statement released after the meeting at which it decided to keep its ultraeasy policy unchanged so as to keep its inflation target feasible.
The BOJ "expects short- and long-term interest rates to remain at their present or lower levels as long as there is a possibility of losing momentum toward the 2-percent inflation goal," Japan's central bank said.
Further adding to speculation the central bank is primed and will follow suit with other central banks in cutting their rates, the BOJ downgraded its growth and inflation forecasts in the years to come, indicating more stimulus measures could be on the way.
In terms of the bank's price outlook, the BOJ cut its inflation forecast for fiscal 2019 through March to 0.7 percent from 1.0 percent forecast in July. The central bank also lowered forecasts for fiscal 2020 to 1.1 percent and 2021 to 1.5 percent, from previous forecasts of 1.3 percent and 1.6 percent, respectively.
At the conclusion of its two-day meeting, the BOJ Policy Board voted to keep short-term interest rates at minus 0.1 percent while guiding longterm rates around zero percent. The central bank also opted to maintain its massive asset purchasing program. meanwhile, Australia's pro-coal government threatened harsh new penalties against "apocalyptic" activism Friday as a global wave of climate protests has become increasingly disruptive for the country's lucrative mining industry.
Prime minister Scott Morrison told a peak mining body that his conservative government was seeking ways to legislate against activists engaged in "secondary boycotts", or pressuring firms not to deal with the resources industry.
"We are working to identify serious mechanisms that can successfully outlaw these indulgent and selfish practices that threaten the livelihoods of fellow Australians," Morrison said at an event in the mineral-rich state of Queensland.
"The right to protest does not mean there is an unlimited licence to disrupt people's lives and disrespect your fellow Australians."
Morrison has been ratcheting up the rhetoric since his surprise election victory early this year when a political gamble ahead of the vote to green-light a huge new coal mine in Queensland is considered to have paid off.
The controversial Adani mine has long been a lightning rod for climate activism in Australia, with environmentalists calling out businesses that engage with the firm. Morrison labelled groups that call for such boycotts as an "insidious threat" to the economy that his government would not allow to "go unchecked".
"There are new threats to the future of the resources sector that have emerged," he said.
"A new breed of radical activism is the on the march. Apocalyptic in tone. Brooks no compromise. All or nothing. Alternative views -- not permitted," said the PM who once brandished a lump of coal in parliament in support of the industry.
Morrison's government has steadfastly rejected calls for greater action to curb greenhouse gas emissions, insisting Australia will meet the targets set out in global agreements without undermining its crucial mining sector.
Last month he snubbed a UN climate summit in New York after it emerged he would not be invited to speak for lack of new climate announcements. "Australia won't write a blank cheque with its economy" to fight climate change "which requires action from around the globe," he said Friday. Morrison was responding to escalating protests by climate activists, thousands of whom rallied across the country in October in as part of the global "Extinction Rebellion" movement.
Climate demonstrations turned violent this week when dozens of protestors were arrested in clashes with police outside an international mining conference in Melbourne.