Economic Buzz: BOJ Keeps Policy Unchanged, Says Economy Likely To Continue Moderate Expansion

The Bank of Japan kept its monetary stimulus unchanged as widely expected on Friday. The monetary policy board members decided by an 8-1 majority vote to hold its target of raising the amount of outstanding JGB holdings at an annual pace of about JPY 80 trillion. The bank will purchase government bonds so that the yield of 10-year JGBs will remain at around zero percent. The board also decided to maintain the -0.1% interest rate on current accounts that financial institutions maintain at the bank. The bank noted that Japans economy is likely to continue its moderate expansion. The year-on-year rate of change in the CPI is likely to continue on an uptrend and increase toward 2%.