BOJ maintains ultra-low interest rates

The Bank of Japan maintained its ultra-easy monetary policy at a meeting today and kept interest rates very low to continue supporting a fragile economic recovery despite stronger-than-expected inflation. The Bank of Japan (BOJ) emphasized on Friday that it is focused on supporting a fragile economic recovery by maintaining ultra-low interest rates and forecasting that inflation will slow later this year. The BOJ left its short-term interest rate target at -0.1% and its target for the 10-year Treasury yield around 0% as expected at a two-day meeting that ended Friday. The BOJ also made no changes to the 0.5% cap on the 10-year yield set under its yield curve control (YCC) policy. The bank decided to continue providing stimulus to help Japan achieve its 2% price stability target sustainably.