BOJ Follows Fed to Maintain the Monetary Policy, Avoiding to Take Global Risks

On Wednesday, June 19, 2019, the U.S. Federal Reserve (Fed) has announced to maintain interest rate, however, there might be a possibility of cutting rates again.
After the Fed’s announcement, on Thursday, June 20, 2019, the Bank of Japan (BOJ) has announced to keep monetary policy steady. As a result of global economic tension that prompts other major central banks to drop hints of additional stimulus as BOJ prefers to save its little ammunition.
A big concern of BOJ as in the global economy is the global risks which have increased as a trade tension and uncertainty over U.S. economic policies.

There is not only BOJ which receiving the effect from the trade tension but there are Central banks across the globe struggling with the escalating U.S.-China trade war which adding pressure on the slowing world economy.

Izuru Kato, Chief Economist at Totan Research gave an opinion “There’s a good chance the Fed will cut rates in July. If that happens, the BOJ will strengthen its forward guidance to keep yen rises in check,” and “The BOJ’s next move will depend on how the U.S. economy performs and how Washington’s trade war with China progresses.”
According to Izuru Kato’s statement, it could be said that the situation of BOJ has also depended on the U.S. economy.  

Many analysts informed the economic in the next quarter of Japan might slow down due to an effect of the trade war between the U.S. and China and the announcement of raising the tax in October.
In addition to Reuters’s poll, the survey of economists presented the expectations of the BOJ’s next move have shifted, even if they are concerned about the economic outlook.