Japan’s central bank keeps ultra-low rates

By Gokhan Ergocun

ISTANBUL (AA) - The Bank of Japan on Friday decided to keep the interest rates at minus 0.1 in the last meeting of its outgoing chief Haruhiko Kuroda.

Kuroda, who has served as the bank’s governor since 2013, has never increased or decreased the rate, which has been at the same level since December 2008.

After the latest policy rate decision, the US dollar gained around 1% against the Japanese yen.

The central bank said it will continue buying 10-year Japanese government bonds without a limitation to defend its 0.5% cap on the benchmark yield.

The country's annual inflation rate was 4.3% in February and 4% in January, while it was 0.5% in January 2022 and minus 0.6% in January 2021.

"The Bank will continue with Quantitative and Qualitative Monetary Easing with Yield Curve Control, aiming to achieve the price stability target of 2 percent, as long as it is necessary for maintaining that target in a stable manner," the bank said.

Kuroda expressed regret over the failure to attain the inflation target of 2% and said that monetary easing should continue to support robust wage growth, according to Kyodo News Agency.