BoJ keeps rates steady, announces policy review

The Bank of Japan on Friday left interest rates unchanged after the first policy meeting chaired by in new governor Kazuo Ueda and announced a policy review of its easing measures.

The move was in line with economist expectations of the rate staying at -0.1% since the central bank took rates below zero in 2016.

It also kept the tolerance range for 10-year Japanese government bonds unchanged at 50 basis points above and below its target of 0%.

In December, the central bank shocked global bond markets by unexpectedly widening its tolerance range for 10-year Japanese government bonds from 25 basis points to 50 basis points above and below 0%.

The central bank also said it had “decided to conduct a broad-perspective review” of its easing measures.

“Achieving price stability has been a challenge for a long period of 25 years,” the central bank said, adding that its monetary easing policies “have interacted with and influenced wide areas of Japan’s economic activity, prices, and financial sector”.

Reporting by Frank Prenesti for Sharecast.com