BOJ Keeps Ultraeasy Policy Unchanged

Politics

Tokyo, Sept. 19 (Jiji Press)--The Bank of Japan decided to keep its current massive monetary easing regime unchanged at its two-day policy-setting meeting that ended on Wednesday.

The BOJ's Policy Board voted seven to two to hold steady the bank's short-term policy interest rate at minus 0.1 pct and its long-term rate target at around zero pct, according to a statement released after the meeting.

Later in the day, BOJ Governor Haruhiko Kuroda will hold a press conference, which is likely to draw attention after Prime Minister Shinzo Abe expressed his willingness on Friday to lay the groundwork within the next three years for an exit from the ultraeasy monetary policy.

At its previous policy meeting in late July, the central bank decided to conduct purchases of Japanese government bonds "in a flexible manner," apparently tolerating a bit greater fluctuations in long-term interest rates.

Following the decision, the yield on the most recent issue of 10-year JGBs, regarded as the nation's benchmark long-term interest rate, surged to as high as 0.145 pct. The key yield fell to levels around 0.1 pct later.

[Copyright The Jiji Press, Ltd.]

Jiji Press