BoJ leaves short-term interest rate unchanged
The Bank of Japan (BoJ) decided on Friday to leave the short-term interest rate unchanged at -0.1%. However, it decided to expand the 10-year government bond yield range to between -0.25% and 0.25% from the target level. It added that it will purchase a necessary amount of bonds without setting an upper limit so that the 10-year bond yields remain around zero percent.
The BoJ also stated it will purchase exchange-traded funds (ETFs) as necessary, with upper limits of about 12 trillion yen, whereas purchases of Japan real estate investment trusts (J-REITs) will be capped at about 180 billion yen, even after the COVID-19 crisis ends. The bank reaffirmed its commitment to the 2% inflation target and its intention to continue with qualitative and quantitative easing as long as it is necessary. It reassured that it will continue following the development of the coronavirus pandemic and “will not hesitate to take additional easing measures if necessary, and also it expects short- and long-term policy interest rates to remain at their present or lower levels.”
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