Governor Kazuo Ueda of the Bank of Japan chaired his first monetary policy meeting this week.
Economists polled by Reuters widely expected the central bank to maintain its negative interest rates at -0.1% and to make no changes to its yield curve control scheme.Kazuhiro Nogi | Afp | Getty Images
The Bank of Japan left its interest rates unchanged in newly appointed Governor Kazuo Ueda's first policy meeting. The decision was in line with economist expectations for no changes to the benchmark interest rate, which has been held at -0.1% since the central bank tookThe central bank also kept the tolerance range for 10-year Japanese government bonds unchanged at 50 basis points above and below its target of 0%.
In December, the central bank shocked global bond markets by unexpectedly widening its tolerance range forinflation needs to be "quite strong and close to 2%" — the central bank's target — before making any adjustments to the yield curve control policy.the central bank purchased more than $1 trillion worth of JGBs to defend its monetary policy last year.
"There remains some uncertainty in the Japanese real economy, but at the same time, inflationary pressures is becoming more imminent," Hiromi Yamaoka, a former official at the Bank of Japan and the current head of Future Institute of Research told CNBC's "Squawk Box Asia" on Friday ahead of the announcement.
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