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 : http://www.channelnewsasia.com/news/business/bank-of-japan-holds-rates-as-inflation-remains-low-9516488