The Bank of Japan (BoJ) announced on Thursday it will leave its monetary policy unchanged, maintaining the short-term interest rate target at a negative 0.1%.
Meanwhile, the ten-year JGB yield target will remain around 0%, as it was in April, implying that the bank will buy the required number of Japanese government bonds without setting a ceiling.
"The central bank will aim to achieve a price stability target of 2% for as long as it is necessary to maintain that target in a stable manner," the BoJ stated in its report. "It will continue to expand the monetary base until the observed year-on-year rate of increase in the consumer price index (CPI) exceeds 1% and remains above the target." The bank will continue to support firm financing and stabilize financial markets.