Bank of Japan holds interest rates

Thursday, 31. October 2019 04:35

The Bank of Japan announced on Thursday that its Policy Board decided by a 7-2 majority vote to keep the short-term interest rate unchanged at -0.1% and guiding long-term interest rates to around zero.

The central bank noted that "there had been no further increase in the possibility that the momentum toward achieving the price stability target would be lost." It also announced it plans to buy Japanese government bonds to keep the 10-year yields at 0%, as well as exchange-traded funds and Japan real estate investment trusts.

The BoJ added it will continue with Quantitative Easing aiming to achieve the price stability target of 2%, as long as necessary. Goushi Kataoka was the only board member that dissented, wanting to lower the short-term policy interest rate in order to strengthen monetary easing.

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