Free Trial

MNI BRIEF: BOJ On Hold; Won’t Hesitate to Act If Necessary

TOKYO (MNI)

The Bank of Japan board on Wednesday decided to maintain yield curve control policy and left its short-term policy interest rate at -0.1% and the long-term interest rate target at around zero percent, a policy statement released by the BOJ showed.

The BOJ maintained the forward guidance for the policy rates, see: MNI STATE OF PLAY: BOJ Policy Meeting To Mull Downside Risks.

"The BOJ will closely monitor the impact of the novel Covid-19 (virus) and will not hesitate to take additional easing measures if necessary, and also it expects short- and long-term policy interest rates to remain at their present or lower levels."

Goushi Kataoka, who was against policy decisions at the past meetings, again dissented the yield curve control but he didn't propose any policy changes.

The BOJ also left the scale of asset purchases, such as ETFs (exchange-traded funds), J-REITs (Japan real estate investment trusts), CP (commercial paper) and corporate bonds unchanged.

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.