The Bank of Japan (BOJ) left its monetary policy stance unchanged, essentially reiterating its statement from September in which it adopted a new policy of “yield curve control” to reach its inflation target by controlling both short-term and long-term interest rates.
The BOJ maintained its interest rate of minus 0.10 percent on banks' deposits that exceed reserve requirements and confirmed that it plans to buy 10-year government bonds so yields remain at around zero percent.
This means the BOJ will continue purchasing bonds at its current pace, around 80 trillion yen. In addition, the BOJ will purchase exchange-traded funds (ETFs) and real estate investment trusts so their outstanding amount rise by an annual pace of about 6 trillion yen and about 90 billion yen, respectively.
The BOJ will also continue purchasing commercial paper and corporate bonds at a pace of about 2.2 trillion and 3.2 trillion yen, respectively.