BoJ keeps interest rates unchanged
Bank of Japan (BoJ) decided on Friday to keep the short-term interest rate target unchanged at -0.1%. In the long term, the bank will continue purchasing government bonds without an upper limit so that the 10-year yields remain at around 0%. The bank will continue quantitative easing with the aim of reaching the price stability target of 2% and continue expanding the monetary base until the year-on-year increase in the CPI exceeds 2% and “stays above the target in a stable manner.”
The BoJ’s Policy Board also agreed to address climate change by applying a 0% interest rate to green loans and bonds. The policy is expected to come into force this year until the end of March 2031 “unless the smooth conduct of market operations is interfered.”
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