Today the Central Bank of Japan announced its decision not to change the base rate and to keep it at the same level – minus 0.1 percent. The head of the Central Bank, Haruhiko Kuroda, said that despite the country’s strong economic growth, it is not advisable to give up incentives. Inflation should wait until it rises to 2 per cent. He also noted that the Japanese economy will continue to recover next year. There are no problems in the banking system of the country. As for the regional banks, their profit margins are deteriorating. The negative dynamics of the indicator was caused by low rates and structural problems. Nevertheless, Kuroda does not expect any serious troubles in the country’s banking sector in the near future. He assured that the financial situation will be closely monitored by the Bank of Japan.

In July-September this year, the Japanese economy grew by 2.5 percent compared to the corresponding period of 2016. The country’s GDP growth has been observed for 7 consecutive quarters. At the same time, inflation remains low at 0.8 per cent. Most analysts believe that the Bank of Japan will withdraw incentives, but this will not happen until 2019.