Investing.com - The Bank of Japan board Tuesday decided to stand pat on monetary policy in a seven-to-two vote, retaining the yield curve control target it adopted in September even as it pushed back the estimated timing of achieving 2% inflation to "around fiscal 2018" from "during fiscal 2017" previously.
The decisions were in line with expectations.
Under the latest policy framework, the BoJ will seek to stabilize the 10-year government bond yield, the benchmark for long-term borrowing costs, round zero percent and keep the overnight interest rate around -0.1%. The goal is to correct the excessively flat yield curve caused by its negative interest rate policy that took effect in February.
The BoJ will also maintain its new inflation-overshooting commitment, continuing monetary easing until inflation rises to 2% from slight drops now and becomes anchored around that level.
The BoJ's asset purchases, which are not the main policy target any longer, will be maintained at the current pace of ¥80 trillion annually
As expected, the BoJ board revised down its median inflation forecast for fiscal 2017 from +1.7% presented in July to +1.5%.