Inflation: Bank of Japan keeps monetary policy unchanged

The Bank of Japan (BoJ) has kept interest rates meager and its current rate of yield curve control, thus confirming its ultra-expansionary monetary policy. Notably, the BoJ kept its benchmark interest rate at -0.1% and signaled it would continue to allow 10-year government bond yields to trade between -0.5% and 0.5%.

The Central Bank of Japan (BoJ) complies with forecasts and keeps its ultra-expansionary monetary policy unchanged in the face of the still-existing uncertainty on the trend of inflation and the uncertainties relating to wage prospects.

Today’s decision by the BoJ follows that of the US Federal Reserve to break the cycle that has seen ten consecutive hikes in interest rates, and the continuation of monetary tightening by the European Central Bank (ECB), with the cost of borrowing at a high in 22 years old.

What is the bank of Japan?

The Bank of Japan ( BoJ ) is Japan’s central bank and the country’s top monetary authority. The bank is headquartered in Nihonbashi, the business district of Chūō, Tokyo. It was established under the Bank of Japan Act of 1882 and began operations on October 10, 1882, before issuing its first banknotes in 1885.