In its most recent monetary policy report released on Tuesday, the Bank of Japan (BOJ) opted to leave its short-term rate target at -0.1 per cent, leaving investors in suspense regarding the timing of any potential policy shift, as it continues with the current negative interest rate.
The central bank also disclosed its decision to acquire a necessary volume of Japanese government bonds (JGBs) without specifying an upper limit. This move is aimed at ensuring that 10-year JGB yields remain in the vicinity of zero per cent, according to the statement. The BOJ affirms its commitment to the continuation of Quantitative and Qualitative Monetary Easing (QQE) with Yield Curve Control (YCC), with the objective of achieving the price stability target. This commitment will persist as long as deemed necessary to maintain the stability of the targeted price.
