Japan’s Monetary Policy Sustained Their Target Rate with a Positive Outlook

Japan’s monetary policy remained steady on Wednesday with a positive outlook on the economy despite raising concerns on global trades.

The central bank of Japan kept the short-term interest rate target at minus 0.1 percent and promises to direct the 10-year government bond yields at zero percent.

At the same time, they continued the adopted policy in July where they pledged to maintain extremely low rates for a longer period of time.

Votes of board members including Goushi Kataoka and Yutaka Harada regarding sustaining the interest rate targets were tallied to be at 7-2.

The economy is said to be “expanding moderately”, as described by the BOJ’s policy.

A news conference will be held by BOJ Governor Haruhiko Kuroda at 3:30 p.m. (0630 GMT) to give an explanation on the policy decision.

Given the soft inflation, the central bank has to sustain the massive stimulus longer than expected and take action in July aiming for a sustainable policy framework while allowing bond yields to move accommodatingly the bond yields close to the target rate.