BOJ maintains stimulus, vows to continue unlimited bond buying

The BOJ also left unchanged its guidance to keep its interest rate targets at current or lower levels. As widely expected, the central bank kept unchanged its short-term interest rate target at -0.1% and a pledge to guide the 10-year government bond yield around 0%.

The Bank of Japan maintained its massive stimulus on Thursday and pledged to continue buying unlimited amounts of 10-year government bonds to defend its implicit 0.25% cap, signalling its resolve to focus on supporting a fragile economy. The BOJ also left unchanged its guidance to keep its interest rate targets at current or lower levels.

As widely expected, the central bank kept unchanged its short-term interest rate target at -0.1% and a pledge to guide the 10-year government bond yield around 0%. The decision was made by a 8-1 vote. In fresh quarterly projections released on Thursday, the BOJ raised its core consumer inflation forecast to 1.9% from 1.1% projected in January. It expects inflation to hit 1.1% for both fiscal 2023 and 2024.