|Published : 16 Mar 2017, 13:07:55|
BOJ keeps policy steady after Fed raises rate
The Bank of Japan (BOJ) kept monetary policy steady on Thursday in the wake of the US Federal Reserve's second interest rate hike in three months.
Economists had expected no change in the BOJ's policy settings as rising global protectionist sentiment and an expected series of US rate hikes overshadow budding signs of recovery in the economy.
Japan, the third-largest economic country of the world, maintained on Thursday its short-term interest rate target of minus 0.1.
Investors are now focusing on Governor Haruhiko Kuroda's post-meeting briefing at 0630 GMT for clues on how the Fed's move could affect the BOJ's decision.
"We think the BOJ will raise the 10-year government bond yield target between July and September," said Yuichiro Nagai, an economist at Barclays Securities.
"It's possible consumer inflation may hit 1.0 per cent as early as August, and the BOJ might adjust the yield target around that time as the economy recovers as a trend."
The central bank maintained on Thursday its short-term interest rate target and a pledge to guide the 10-year government bond yield at around zero per cent via aggressive asset purchases.
It also kept intact a loose pledge to maintain the pace of its annual increase in Japanese government bond (JGBs) holdings, which is 80 trillion yen ($706 billion).
The BOJ also maintained its cautiously optimistic assessment that the economy continues to recover moderately as a trend, according to Reuters.