BOJ holds its monetary policy steady
On Thursday, the BOJ dared to hold off on expanding monetary stimulus, as soft consumption, a strong yen might hamper economic recovery.
The country’s major bank maintained its pledge to drastically increase base money or deposits and cash in circulation at an annual tempo of about 80 trillion yen. Apart from that, the BOJ left its 0.1% negative interest rate intact.
Additionally, Japan’s number one financial institution has already decided to launch a 300 billion yen loan-supplying program aimed at assisting banks, which operate in areas affected by recent earthquakes, southern Japan.
The BOJ’s verdict to keep the base money target was backed up by an 8-1 vote, while the decision to maintain the 0.1% negative rate obtained a 7-2 vote.
Haruhiko Kuroda, the BOJ chief is going to hold a new conference soon to provide a detailed explanation on this decision.
Previously, in January, the BOJ shocked financial markets by imposing a 0.1% negative interest rate to its massive asset-buying program called quantitative and qualitative easing.