The Bank of Japan has left the interest rate unchanged. This was demonstrated by the central bank’s interest rate decision on Tuesday.
The Policy Council of the Japanese central bank again maintained a negative vote of eight for and one at short-term interest rates at 0.1 percent and wants to keep the yield on ten-year Japanese government bonds around zero.
The Bank of Japan reiterated on Tuesday his purchasing of ETFs and real estate funds to 12 trillion yen per year, up to a maximum of 180 billion yen.
However, the central bank slightly increased growth estimates as the world economy is recovering from the coronavirus crisis thanks to all vaccination programmes.
Furthermore, the central bank foresees that core inflation will remain negative in the short term. Subsequently, the trend will reverse and prices will gradually rise.
The dollar was up 0.2 percent on Tuesday at 108.24 yen.