BOJ Improving Transparency in Announcement of Policy

BOJ Governor Brian Wynter says the Central Bank is being more transparent in how it announces policy decisions.

They’ve published a schedule of these announcements, which will be made consistently every six weeks.

The Central Bank made its first announcement under the new schedule yesterday. They’ve reduced the policy rate by 25 basis points, to 2.75 percent.

The policy rate is the interest rate paid by the BOJ on overnight deposits. The rate is important because the Governor says it influences the rates set by the banks.

Governor Wynter says it also influences the inflation rate, which is expected to be between 4 and 6 percent in the upcoming year.