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BoJ stands pat, extends pandemic relief program

BoJ announced no change in monetary policy as widely expected. Under the yield curve control framework, short term interest rate target is held at -0.10%. BoJ will continue to buy JGBs, without upper limit, to keep 10-year JGB yields at around 0%. The decision was made by 7-1 majority vote with 1 abstention. Goushi Kataoka dissented as usual, pushing for strengthening easing. Takako Masai abstained.

The board also voted with 8-0 majority vote, with 1 abstention, to extend the duration of the Special Program to Support Financing in Response to the Novel Coronavirus by 6 months until the end of March 2022.

BOJ also pledges to “closely monitor” in the impact of COVID-19, and “will not hesitate to take additional easing measures if necessary”. Also, it “expects short- and long-term policy interest rates to remain at their present or lower levels”.

Full statement here.

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