Bank of Japan holds rates as inflation remains low

Bank of Japan holds rates as inflation remains low

People walk past the Bank of Japan building in Tokyo, Japan, on  Jun 16, 2017. (Photo: REUTERS/Toru Hanai)
TOKYO: The Bank of Japan kept its ultra-loose monetary policy in place on Thursday (Dec 21) as inflation remains stubbornly low in the world's third-biggest economy, bucking a trend of gradually tighter policy in major economies.The bank said it would purchase 10-year government bonds so that long-term interest rates would remain "at around zero per cent".The BoJ will also keep charging a negative interest rate on some accounts held by financial institutions at the central bank in a bid to prompt lending by commercial banks.BoJ chief Haruhiko Kuroda later Thursday gave few clues about any timeline for pulling back the bank's huge asset-buying programme."We won't raise interest rates just because our economy is doing well ... We'll consider further easing if there's a risk that the momentum (towards achieving the two-per cent inflation target) isn't maintained," he told reporters.Investors were also watching out for possible indications on whether Kuroda will stay on as he nears the end of his five-year term.
Prime Minister Shinzo Abe has reportedly asked him to stay on.However, Kuroda was coy on this subject, saying he was not in a position to comment on personnel issues.
Source: AFP/ec
 Source : http://www.channelnewsasia.com/news/business/bank-of-japan-holds-rates-as-inflation-remains-low-9516488