MNI BRIEF: BOJ Keeps YCC, Negative Rate, Forward Guidance

The Bank of Japan board on Tuesday decided unanimously to keep yield curve control policy, including the negative interest rate, and pledged to continue patiently with monetary easing amid high uncertainty on economies and financial markets.

The BOJ maintained its stance of conducting YCC with the 1.0% upper bound as a reference and will continue to manage yields mainly through large-scale Japanese government bond purchases and market operations. “By doing so, it will aim to achieve the price stability target of 2% in a sustainable and stable manner, accompanied by wage increases,” the BOJ said.

The bank also kept its forward guidance for the policy rates and pledged to take additional easing measures if necessary.

“With extremely high uncertainties surrounding economies and financial markets at home and abroad, the BOJ will patiently continue with monetary easing while nimbly responding to developments in economic activity and prices as well as financial conditions,” the BOJ said.