Investing.com – The Bank of Japan on Wednesday kept its benchmark interest rate unchanged, in a widely expected move and cut its economic outlook citing the effects of a stronger yen and sluggish conditions abroad.
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.
The BoJ also kept unchanged a JPY20 trillion yen fund to buy assets such as corporate bonds and exchange-traded funds.
“The pick-up in Japan’s economic activity has paused, mainly due to the effects of a slowdown in overseas economies and of the appreciation of the yen as well as of the flooding in Thailand,” the Bank of Japan said in a statement accompanying the policy decision.
The statement added that, “economic activity would likely remain more or less flat for the time being,” citing risks from Europe and the U.S.
Following the decision, the yen was higher against the U.S. dollar, with USD/JPY shedding 0.18% to trade at 77.75.
Meanwhile, Asian stock markets were broadly higher. Hong Kong's Hang Seng Index jumped 1.45%, Australia’s ASX/200 Index rallied 2.1%, while Japan’s Nikkei 225 Index rose 1.5%.
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.
The BoJ also kept unchanged a JPY20 trillion yen fund to buy assets such as corporate bonds and exchange-traded funds.
“The pick-up in Japan’s economic activity has paused, mainly due to the effects of a slowdown in overseas economies and of the appreciation of the yen as well as of the flooding in Thailand,” the Bank of Japan said in a statement accompanying the policy decision.
The statement added that, “economic activity would likely remain more or less flat for the time being,” citing risks from Europe and the U.S.
Following the decision, the yen was higher against the U.S. dollar, with USD/JPY shedding 0.18% to trade at 77.75.
Meanwhile, Asian stock markets were broadly higher. Hong Kong's Hang Seng Index jumped 1.45%, Australia’s ASX/200 Index rallied 2.1%, while Japan’s Nikkei 225 Index rose 1.5%.