By Megumi Fujikawa
TOKYO (Dow Jones)–The Japanese central bank has its monetary policy leave unchanged. The Bank of Japan (BoJ) confirmed the negative short-term interest rate at minus 0.1 percent and the reference value for the yield on 10-year government bonds at 1 percent. The central bank’s announcement contained no reference to one Interest rate increase. However, analysts expect the BoJ to end its negative interest rate policy in the first half of 2024.
The Central Bank Council had gradually raised the upper limit for the 10-year government bond to 1 percent. At the meeting in October, she announced that this 1 percent limit should only be viewed as a reference value and not as a hard limit.
According to analysts and traders, the exit from negative interest rates could come as early as the meetings in January or April. Inflation has been above the central bank’s target of 2 percent for over a year.
The yen weakened after the BoJ announcement. In recent weeks it has appreciated sharply against the dollar. Before the central bank decision, the yen was trading at 142.60 against the dollar in Tokyo. It weakened to 143.60 after the decision. At the end of November the price was still at 150 yen.
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(END) Dow Jones Newswires
December 19, 2023 00:19 ET (05:19 GMT)