BOJ’s Move on Interest Rates
The Bank of Japan left its benchmark interest rate unchanged and decided to gradually reduce bond purchases next year in a sign of caution amid rising market volatility.
The BOJ board, led by Governor Kazuo Ueda, kept its benchmark interest rate steady at 0.5% at the end of a two-day meeting, according to a statement Tuesday.
The central bank also said it plans to trim its monthly bond purchases starting next fiscal year to a quarterly pace of ¥200 billion ($1.34 billion) from the current ¥400 billion.
All 53 economists surveyed by Bloomberg forecast interest rates would be unchanged at the meeting, while two-thirds expected the BOJ to slow its tapering of bond purchases.
Source: Bloomberg