The Bank of Japan (BoJ) announced Thursday that it will keep its monetary policy unchanged, leaving the short-term interest rate target at negative 0.1%. Regarding the 10-year JGB yield target, the institution said it will remain around 0%, as it was in July while adding that the bank will buy the required number of bonds without setting an upper limit.
The Policy Board of the Bank of Japan also decided at the Monetary Policy Meeting "to phase out the Special Funds-Supplying Operations to Facilitate Financing in Response to the Novel Coronavirus (COVID-19) and shift to fund-provisioning that would meet a wide range of financing needs (a unanimous vote)."
Finally, the bank did not rule out in its report possible downside risks from the coronavirus and the war in Ukraine. Therefore, it added that it is necessary "to pay due attention to developments in financial and foreign exchange markets and their impact on Japan's economic activity and prices."