The Bank of Japan maintained its interest rates unchanged, sticking to its accommodative monetary policy, a contrasting move to major central banks that raise interest rates to curb inflation.
After concluding its two-day meeting, the bank kept the short-term interest rate at 0.1%, in line with expectations, and the 10-year government bond yield at 0%.
In a statement, the bank announced that it would offer to purchase 10-year Japanese government bonds at a fixed interest rate of 1.0%, up from the previous rate of 0.5%, indicating a clear signal that the bank is accepting more monetary tightening. On the other hand, the Bank of Japan raised its inflation expectations to 2.5% from the previous 1.8%.
The Bank of Japan said it remains committed to its stimulative policy, waiting for more sustainable signs of inflation, unlike the U.S. Federal Reserve, which raised interest rates 11 times since last year, and the European Central Bank, which raised interest rates yesterday for the ninth consecutive time, reaching the highest level in 22 years. (QNA)
Source: Qatar News Agency