Bank of Japan Governor Kazuo Ueda arrives to conduct an interview with a small group of journalists in Tokyo on May 25, 2023.
Richard A. Brooks | AFP | Getty Images
Japan’s central bank maintained its ultra loose monetary policy on Friday, electing to support fragile economic growth at a time of swirling global uncertainty.
The Bank of Japan held its short-term interest rate target at -0.1% and made no changes to its yield curve control policy, in line with economists’ expectations.
The BOJ’s monetary policy differs sharply from that of most developed economies. The Bank of Japan’s short-term interest rate target has been held at -0.1% since it first adopted negative rates in 2016.
Earlier this week, the U.S. Federal Reserve left rates unchanged Wednesday after 10 straight hikes, while the European Central Bank on Thursday raised its main rates to the highest levels in 22 years.
Friday’s decision shifts focus to the bank’s next meeting, scheduled for July.
Economists have been watching for changes to the BOJ’s yield curve control policy, which aims to keep 10-year Japanese government bond yields around 0%. In December, the central bank unexpectedly widened the range for the 10-year yield target to 50 basis points above and below 0%.
Japan’s core inflation rate stood at 3.4% in April, while first-quarter growth was revised sharply higher to 2.7%.
This is breaking news. Please check back for updates.
