The Bank of Japan (BoJ) produced few surprises at its September monetary policy meeting, keeping interest rates, asset purchases and its assessment on the Japanese economy unchanged from July.
Voting 8-1 in favour of the measure, the BoJ board maintained its quantitative and qualitative monetary easing (QQE) with yield curve control program, keeping interest rates unchanged at -0.1% while pledging to purchase Japanese government bonds (JGB) so that 10-year JGB yields will remain at around zero percent.
It repeated that it would conduct JGB purchases at an annual pace of around 80 trillion yen with the aim “to achieve the target level of the long-term interest rate specified by the guideline”, adding that it will “continue expanding the monetary base until the year-on-year rate of increase in the observed CPI exceeds 2% and stays above the target in a stable manner”.
The BoJ also voted unanimously to keep annual purchases of exchange traded funds, Japan real estate investment trusts and corporate paper and bonds unchanged at about 6 trillion yen, 90 billion yen and 5.4 trillion respectively.
On the Japanese economy, the BoJ said that it is “expanding moderately”, unchanged from its previous assessment. It added that it was “likely to continue its moderate expansion” in the period ahead.
Financial markets are largely unmoved following the release of the policy statement.
The full statement can be accessed here.