MNI BRIEF: BOJ Keeps YCC; Policy Rates Forward Guidance
The Bank of Japan board on Friday decided unanimously to maintain yield curve control and pledged to continue patiently with monetary easing amid high uncertainties on economies and financial markets.
The BOJ also decided to keep a cap of the 10-year interest rate at 1.0% and kept the forward guidance for the policy rates, committing to conduct 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. “By doing so, it will aim to achieve the price stability target of 2% in a sustainable and stable manner, accompanied by wage increases."
Under the yield curve control framework adopted in September 2016, the BOJ kept the target for the overnight interest rate at -0.1% and the long-term interest rate at about zero percent.