Market expectations that the BOJ will begin to gradually end its continuation incentive program in the face of increasing inflationary pressure have failed.
At the end of the 2-day meeting, the bank unanimously decided to keep the interest rate at -0.10 percent.
The bank also continued its yield curve control policy, which allowed the 10-year bond’s yield to move 50 basis points on either side of the 0 percent target.
The BOJ also said in a statement that it will continue to purchase large-scale bonds and will increase purchases on a flexible basis should the need arise.
