Bank of Japan retains policy rate

It maintained its short-term interest rate at -0.1% and the 10-year government yields at 0%.

The Bank of Japan (BoJ) kept its monetary policy steady and reflected an upbeat view on the economy, suggesting policymakers are in no hurry to boost stimulus even as global risks threaten a fragile recovery, reports Reuters.

BOJ maintained its short-term interest rate target at -0.1% and that for 10-year government bond yields around 0%.

The decision to stand pat keeps Japan in line with the U.S. Federal Reserve and the European Central Bank, which have both signalled their respective monetary policies will be in a holding pattern for the time being.

“The BOJ will likely stand pat throughout next year given the Fed probably won’t raise or cut interest rates, which should keep yen moves steady,” said Izuru Kato, chief economist at Totan Research.

“For the time being, the BOJ will keep its fingers on the trigger to signal its readiness to ease. But it won’t actually pull the trigger.”

The central bank also kept intact its assessment that Japan’s economy continues to expand moderately as a trend.

Here’s more from Reuters.