Japan's central bank keeps ultra-low rates policy

TOKYO, Dec 19 (KUNA) -- Japan's central bank decided on Tuesday to maintain its ultra-low interest rates policy.

At a two-day policy meeting, Bank of Japan's (BOJ) Governor Kazuo Ueda and his board colleagues agreed to keep short-term interest rates at minus 0.1 percent, The decision they made in the previous October meeting, according to a statement released by the BOJ. The decision also include guiding 10-year government bond yields around zero percent with the 1.0 percent ceiling "as a reference".
The Bank will continue to maintain the stability of financing, mainly of firms, and financial markets, and will not hesitate to take additional easing measures if necessary," it said. Meanwhile, the BOJ said the world's third-largest economy is likely to continue recovering moderately for the time being, although it is expected to be under downward pressure stemming from a slowdown in the pace of recovery in overseas economies. "Thereafter, as a virtuous cycle from income to spending gradually intensifies, Japan's economy is projected to continue growing at a pace above its potential growth rate," it said. (end) mk.jsy.