BOJ Keeps Monetary Policy Unchanged

Politics

Tokyo, Sept. 22 (Jiji Press)--The Bank of Japan decided to keep its current massive monetary easing policy unchanged on Wednesday.

At the end of its two-day policy-setting meeting, the BOJ Policy Board voted eight to one to keep its short-term policy interest rate at minus 0.1 pct and guide 10-year government bond yields around zero pct.

The BOJ also decided details of a new fund-supply scheme aimed at supporting the fight against climate change, under which the central bank provides zero interest funds to commercial financial institutions making investments in efforts to accelerate decarbonization. Financing under the scheme, whose draft outline was announced in July, is planned to start in late December.

The Japanese economy "has picked up as a trend, although it has remained in a severe situation" due to the impact of the new coronavirus pandemic, the BOJ said in a statement released after the meeting, using the same expression as in mid-July, when the central bank's previous policy-setting meeting was held.

The BOJ also kept its assessment on private consumption unchanged, saying that it has remained "stagnant" as downward pressure on consumption of services has stayed strong.

[Copyright The Jiji Press, Ltd.]

Jiji Press