Tokyo March 10 2023: The Bank of Japan (BOJ) maintained ultra-low interest rates on Friday and held off making changes to its controversial bond yield control policy, leaving options open ahead of a leadership transition in April.
Though widely expected by most analysts, the decision sent the yen and local bond yields tumbling as some investors unwound bets retiring central bank governor Haruhiko Kuroda would tweak the yield curve control (YCC) at his last policy meeting.
Kuroda leaves the bank with a mixed legacy: his massive stimulus is praised for pulling the economy out of deflation, but straining bank profits and distorting market function with prolonged low interest rates.
At its two-day meeting that ended on Friday, the BOJ maintained its short-term interest rate target at -0.1% and that for the 10-year bond yield around 0%.
It also left unchanged a band set around the 10-year yield target that allows the yield to rise up to 0.5%.
