Bank of Japan Keeps Monetary Policy Steady

Japan’s central bank kept its powder dry at its March policy review on Tuesday, with economists only expecting further stimulus in July as the central bank waits to assess the impact of its uncharted entry into negative interest rates.

After a two-day monetary policy meeting that began on Monday, the Bank of Japan (BOJ) maintained its commitment to raise the monetary base by 80 trillion yen annually and left the rate it charges commercial banks on certain reserves at 0.1 percent.

The benchmark Nikkei stock index traded down 0.4 percent following the decision, while the yen was little changed at 113 per dollar.

If needed, additional easing steps will be taken to hit 2 percent inflation, the BOJ said, adding that it will review the ratio of reserves for which negative interest rates are applied every three months.

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.