The Bank of Japan (BOJ) kept monetary settings unchanged on Friday and stuck to its upbeat view on the economy, underscoring its conviction that its massive stimulus programme is helping drive up inflation towards its elusive target.
“Japan’s economy is expanding moderately, with a virtuous cycle from income to spending operating,” the BOJ said in a statement announcing the policy decision.
In a widely expected move, the BOJ maintained its short-term interest rate target at minus 0.1 percent and a pledge to guide 10-year government bond yields around zero percent.
The decision was made by an 8-1 vote with board member Goushi Kataoka dissenting on the view that the BOJ should speed up bond buying to further push down longer-term yields.
BOJ Governor Haruhiko Kuroda will hold a news conference at 3:30 p.m. (0630 GMT) to explain the policy decision.