BOJ Holds Policy Intact, Ups FY 2022 Inflation Forecast

Economy Politics

Tokyo, April 28 (Jiji Press)--The Bank of Japan decided Thursday to keep its current monetary easing policy unchanged while raising its fiscal 2022 inflation forecast.

The BOJ will continue its yield curve control scheme to guide the yield on the benchmark 10-year Japanese government bond issue around zero pct while imposing a short-term policy interest rate of minus 0.1 pct.

In a press conference held after the end the same day of central bank's two-day policy-setting meeting, BOJ Governor Haruhiko Kuroda said, "We will support economic activities by continuing to implement the current powerful easing measures in a tenacious manner."

On the recent sharp depreciation of the yen, Kuroda said, "It is necessary to take account of the possibility of excessive swings (in the Japanese currency's exchange rates) affecting adversely (the economy and prices)."

But at the same time, he stressed that he keeps believing that a weak yen benefits the economy as a whole.

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