BoJ decided to keep its current monetary policy unchanged as expected. Following are the highlights of the Bank of Japan monetary policy statement:
- Bank decided by majority to keep the current monetary policy unchanged.
- Interest rate will be kept in negative range at -0.10%.
- The bank will buy government 10 years bonds while keeping yields at zero levels.
- The bank will continue to buy government bonds at an annual rate of 80 trillion yen to meet the long-term price target.
- The Bank will continue to buy ETFs and real estate investment funds at an annual rate of $ 6 trillion and $ 90 billion, respectively.
- The bank will keep the volume of purchases of securities and corporate bonds at 2.2 trillion and 3.2 trillion, respectively.
- The economy continues to grow at a moderate pace.
- The labor market is strong.
- Inflation is expected to rise to the target of 2%.
- The Bank considers it appropriate to provide future guidance on interest rates and the sustainability of the cash facilitation program with control of the yield curve.
- Current policy supports price stability and its rise to about 2%.
- The Bank will continue to maintain its current policy until inflation reaches its target level.
- The monetary base will be expanded until inflation exceeds specified levels.
- The Bank will examine the risks that are more appropriate to the current policy.
