BOJ keeps monetary policy unchanged amid global uncertainties


FE Team | Published: September 19, 2019 14:48:42 | Updated: September 23, 2019 13:15:33


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The Bank of Japan (BOJ) has voted to leave its ultra-easy monetary policy unchanged at the conclusion of its two-day policy-setting meeting.

The central bank on Thursday took the decision despite a number of other global central banks cutting rates to underpin their economies amid uncertainties about global stability and growth.

The lender opted to keep unchanged the short-term interest rate at minus 0.1 per cent and keep its long-term interest rates at close to zero, reports Xinhua.

The central bank's board at the conclusion of the meeting also voted to leave unchanged its massive asset purchasing programme.

"It is necessary to pay closer attention to the possibility that the momentum toward achieving the price stability target will be lost, as slowdowns in overseas economies have continued to be observed, and their downside risks seem to be increasing," the BOJ Board said in a statement issued Thursday.

The BOJ's decision to maintain its easing policy came on the heels of the US Federal Reserve cutting its interest rates for a second time this year overnight, with economists hedging a third cut could be possible by the end of the year, to support the world's largest economy.

The European Central Bank (ECB), meanwhile, also lowered its rates for the first time in more than three years last week to help bolster the eurozone economy, with the ECB also saying its purchasing of government bonds would be re-implemented.

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