MNI BRIEF: BOJ Keeps YCC, Economic Assessment Unchanged

The Bank of Japan board on Friday decided unanimously to keep yield curve control policy and pledged to continue patiently with monetary easing amid high economic and financial market uncertainty.

The BOJ also kept the forward guidance for the policy rates and pledged to take additional easing measures if necessary. "The BOJ will patiently continue with monetary easing while nimbly responding to developments in economic activity and prices as well as financial conditions,” the Board said in a statement. “By doing so, it will aim to achieve the price stability target of 2% in a sustainable and stable manner, accompanied by wage increases,” it said.

Under the YCC framework adopted in September 2016, the BOJ keeps the target for the overnight interest rate at -0.1%. The Bank purchases the necessary amount of JGBs without setting an upper limit so that the 10-year JGB yield remain at about 0%.