BOJ keeps ultra-loose policy intact

Japanese national flag is hoisted atop the headquarters of Bank of Japan in Tokyo, Japan Sept 20, 2023. REUTERS/Issei Kato/File photo

TOKYO  – The Bank of Japan maintained ultra-loose monetary settings on Tuesday in a widely expected move, underscoring policymakers’ preference to await more clues on whether wages will rise enough to keep inflation durably around its 2-percent target.

At the two-day meeting that ended on Tuesday, the BOJ maintained a 0.1-percent interest charged on financial institutions’ excess reserves, and a 0 percent target for the 10-year government bond yield set under its yield curve control (YCC) policy. It also maintained the 1 percent upper bound for the 10-year yield.

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“The BOJ will continue to maintain the stability of financing, mainly of firms, and financial markets, and will not hesitate to take additional easing measures if necessary,” the BOJ said in a statement, maintaining its dovish policy guidance.