Daily Management Review

Bank of Japan keeps the rate unchanged, plans to cut purchases of government securities


The Bank of Japan decided to maintain the current key interest rate.

According to a statement from the Japanese Central Bank, commercial banks' short-term interest rates on deposits continued to vary between 0% and 0.1% annually.

Experts anticipated that the rate would not change.

The Central Bank boosted rates in March, marking the first increase since 2007. Prior to that, the rate had been negative since 2016. Additionally, the regulator gave up trying to track the rate on 10-year government bonds.

The Bank of Japan said that it will keep purchasing government bonds at a rate of roughly 6 trillion yen ($38 billion) per month. Simultaneously, it will reveal its plans for reducing the amount of buybacks in July.

The central bank stated, "We have decided to subsequently reduce the size of our purchases to guarantee a freer formation of long-term interest rates in financial markets."

source: reuters.com