The Bank of Japan has maintained its benchmark interest rate at 0%-0.1%, stating that Japan’s economy has recovered moderately, although some weakness has been seen in part.
In the statement on Friday, the Bank of Japan (BOJ) announced its intent to reduce bond purchases in the future to allow long-term interest rates more room for adjustment.
During its two-day policy meeting, the central bank reaffirmed its commitment to purchasing government bonds at the current rate. However, it disclosed plans to devise a concrete strategy for scaling back these purchases over the next one to two years, with the details expected to be unveiled at the upcoming policy-setting meeting scheduled for July.
As anticipated, the BOJ retained its short-term interest rate target within a range of 0-0.1% through a unanimous vote. Governor Kazuo Ueda is slated to conduct a news conference to elaborate on the decision in the afternoon.
