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BOJ keeps its policy intact
On Thursday, the Bank of Japan kept its monetary policy intact notwithstanding soaring signs of strength in the Japanese economy, indicating that it wasn’t rushing to drift away from crisis-mode stimulus with inflation still far from its 2% objective.
As widely anticipated, the BOJ kept its short-term interest rate objective at minus 0.1% and the 10-year bond yield objective approximately 0% - wrapping up a year in which the key financial institution made no change to policy.
Haruhiko Kuroda, BOJ Governor told at a news conference that he had no plan to modify the current policy framework, adding that dwindling revenues at financial institutions were obtained not only due to ultra-low interest rates, but also due to structural factors, including a dwindling population.
Thursday's decision to leave monetary policy intact was made in an 8-1 vote. By the way, board newcomer Goushi Kataoka stressed that the BOJ requires buying bonds so that yields for durations of 10 years and even longer could keep tumbling.
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