MNI BRIEF: BOJ Keeps Forward Guidance Intact In Policy Hold

The Bank of Japan board on Thursday stood pat on monetary policy as the economy largely continued moving in line with the baseline scenario despite increasing uncertainties and downside risks.

The BOJ also left forward guidance for policy rates intact, indicating the policymakers are vigilant against near-term downside risks to the economy and the need to keep an easing bias fort the near-term monetary policy outlook, see: MNI STATE OF PLAY: BOJ To Hold Despite Higher Prices Outlook.

“For the time being, the BOJ will closely monitor the impact of Covid-19 and will not hesitate take additional easing measures if necessary, and also it expects short- and long-term interest rates to remain at their present or lower levels.”