Under the yield curve control, BoJ kept short-term policy interest rate unchanged at -0.10%, and 10-year JGB target at around 0% without upper limit to purchases. It will continue to buy ETFs and J-REITs with upper limits of JPY 12T and JPY 180B respectively on annual paces.
The Special Program to Support Financing in Response to the Novel Coronavirus is extended in part by six months until the end of September 2022. The additional purchases of commercial paper and corporate bonds will be complete at the end of March 2022 as scheduled with outstanding amounts gradually drop back to pre-pandemic levels.
BoJ said, “Japan’s economy is projected to continue growing at a pace, albeit slower, above its potential growth rate.” Core CPI is “likely to increase moderately in positive territory in the short run,” and “projected to increase gradually as a trend”.
The course of COVID-19 continues to warrant attention”. There are “high uncertainties over whether the resumption of economic activity can progress smoothly”. Attentions should also be paid to risk that “effects of supply-side constraints seen in some areas will be amplified or prolonged.”