The Bank of Japan kept its monetary policy unchanged on Wednesday and cut its price forecasts, increasing expectations that sluggish inflation will force the central bank to temporarily maintain a large-scale stimulus plan.
The Bank of Japan also issued a stronger warning against the cost of persistent easing than it did three months ago, saying the risk of destabilizing the financial system is temporarily low but noteworthy.
The Bank of Japan, as expected, kept its short-term interest rate target unchanged at minus 0.1%, and promised to keep the yield on the benchmark 10-year bond around 0%.
The Bank of Japan continued its forward-looking guidance adopted in July, promising to keep interest rates ultra-low for a considerable period of time.
The committee voted 7 to 2 to maintain the interest rate target unchanged decision, deliberate members Kaoka Gang Shi and Harada Tae voted against.
Kuroda Higashihiko, President of the Bank of Japan, will hold a press conference at 0630GMT to clarify policy decisions.
Hot Model No.: