9/17/2020, 5:01 AM (Source: TeleTrader)
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BoJ keeps interest rate stable

Bank of Japan (BoJ) decided on Thursday to keep the interest rate unchanged. It will apply an interest rate of -0.1% and continue to purchase government bonds so that the 10-year yields remain around 0%.

The bank stated that the Japanese economy had started to recover from the coronavirus crisis, but that it "has remained in a severe situation." The pace of improvement is expected to be moderate, and the consumer price index (CPI) changes on a yearly basis are "likely to be negative for the time being." The BoJ stated it would continue with quantitative easing until the price stability target of 2% is reached.

It added that it would not hesitate to take additional easing measures if necessary, and that it expected short- and long-term policy interest rates to stay at their current levels.

Breaking the News / DJ