Investing.com – The Bank of Japan kept its benchmark interest rate unchanged, it announced on Thursday.
In a statement, the BoJ said it was keeping its benchmark interest rate unchanged between a range of 0.0% to 0.1%, broadly in line with expectations.
A statement on monetary policy released after the announcement showed that the Bank of Japan’s nine-man policy board voted unanimously to maintain the interest rate at its current level.
Since the Great East Japan Earthquake occurred, the Bank, with a view to ensuring stability in financial markets, has been providing ample funds sufficient to meet demand in the markets. It further strengthened monetary easing by increasing the amount of the Asset Purchase Program, mainly of the purchases of risk assets, by about JPY5 trillion.
The bank added that Japan's economy is under strong downward pressure, mainly on the production side, due to the effects of the earthquake disaster. Specifically, the earthquake has sharply dampened production in some areas by damaging production facilities, disrupting the supply chain, and constraining electric power supply; exports and domestic private demand have been affected accordingly.
Following the decision, the yen was up against the U.S. dollar, with USD/JPY shedding 0.25% to hit 85.27.
In a statement, the BoJ said it was keeping its benchmark interest rate unchanged between a range of 0.0% to 0.1%, broadly in line with expectations.
A statement on monetary policy released after the announcement showed that the Bank of Japan’s nine-man policy board voted unanimously to maintain the interest rate at its current level.
Since the Great East Japan Earthquake occurred, the Bank, with a view to ensuring stability in financial markets, has been providing ample funds sufficient to meet demand in the markets. It further strengthened monetary easing by increasing the amount of the Asset Purchase Program, mainly of the purchases of risk assets, by about JPY5 trillion.
The bank added that Japan's economy is under strong downward pressure, mainly on the production side, due to the effects of the earthquake disaster. Specifically, the earthquake has sharply dampened production in some areas by damaging production facilities, disrupting the supply chain, and constraining electric power supply; exports and domestic private demand have been affected accordingly.
Following the decision, the yen was up against the U.S. dollar, with USD/JPY shedding 0.25% to hit 85.27.