BOJ Hints at Possible Future Interest Rate Cut
Tokyo, Oct. 31 (Jiji Press)--The Bank of Japan revised its forward guidance Thursday, explicitly signaling the possibility of lowering interest rates further.
Meanwhile, the bank decided to keep its monetary policy unchanged at a two-day Policy Board meeting that ended the same day, in contrast to the U.S. Federal Reserve, which decided to cut policy interest rates for the third time this year at its two-day Federal Open Market Committee through Wednesday.
The BOJ board voted seven to two on its decision to apply an interest rate of minus 0.1 pct to some of commercial financial institutions' current account deposits at the BOJ and guide 10-year Japanese government bond yields to levels around zero pct.
In a policy statement released after the meeting, the BOJ said there has been "no further increase" in the risk that momentum toward the bank's inflation target of 2 pct will be lost.
But the BOJ underscored the need to "continue to pay close attention" to the risk.
[Copyright The Jiji Press, Ltd.]