BoJ’s is keeping interest rates at very low levels

The Bank of Japan kept interest rates at ultra-low levels on Friday as well as its guidance on future low interest rates, meaning the Japanese central bank is in no hurry to exit its stimulus policy.

In a two-day meeting that ended on Friday, the Bank of Japan maintained the 0.1 percent interest paid by financial institutions on excess reserves deposited with the central bank, and also kept ten-year government bond yields at about 0 percent.

In the statement announcing the decision, the Bank of Japan reiterated its pledge to maintain ultra-loose monetary policy “as long as necessary to maintain the inflation target (of 2 percent) in a stable manner.”