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”.
