The Bank of Japan maintained its dovish stance by keeping interest rates unchanged in its policy meeting on Friday despite hawkish moves by central banks around the world.
As widely expected by analysts and economists, the Japanese central bank in a unanimous vote, kept its interest rates at -0.1%, and 0% for the 10-year government bond yield. The committee also said that it would purchase necessary amounts of government bonds at a fixed rate to keep its 10-year bond yields at 0%.
The announcement was delivered on Friday despite the Japanese currency hovering at 32-year lows amid pressure from central banks around the world that raised interest rates in an attempt to curb high inflation.
In the meantime, the central bank published its revised forecast for inflation outlook, expecting the core consumer price to hit 2.9% in the current fiscal year ending in March 2023 and 1.6% the fiscal year of 2024.
Earlier, Japan announced a $490 billion stimulus package to ease the impact of rising prices.