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.

CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.