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BOJ maintains stimulus, vows to continue unlimited bond buying -Breaking

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© Reuters. FILE PHOTO A man in a mask walks by the Bank of Japan headquarters during the COVID-19 outbreak that erupted in Tokyo, Japan on May 22, 2020. REUTERS/Kim Kyung Hoon

TOKYO (Reuters – The Bank of Japan kept its enormous stimulus going on Thursday. It pledged to keep buying unrestricted 10-year government bonds up to 0.25% to protect its implicit 0.25% cap. This signals its intent to help a fragile economy.

The BOJ has also not changed its direction to continue its target of maintaining its interest rates at the current level or lower.

It was expected that the central bank would keep unchanged the target of -0.1% for short-term rates and promise to maintain a 10-year yield of around 0%. It was voted 8-1.

The BOJ released new quarterly projections on Thursday. It raised its core consumer inflation forecast from 1.1% in January to 1.9%. The BOJ expects that inflation will reach 1.1% in fiscal 2023 as well 2024.

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