Japan holds rates at ultra-low levels, leaves yield curve controls untouched

Central bank leaves short-term interest rate target at -0.1%, in line with market forecast

By Tuba Ongun

ANKARA (AA) – The Bank of Japan on Friday decided to hold its interest rates at ultra-low levels and left yield curve control program unchanged, meeting economists' expectations.

The short-term interest rate target was kept at -0.1% and 10-year bond yields at around 0% after a two-day meeting.

The central bank maintained its view that the annual hike in consumer prices will decelerate in the coming months.

Following the move, the Japanese yen dropped 0.3% to around 140.70 per dollar.

Japan's annual inflation rate rose to 3.5% in April from March's six-month low of 3.2%, led by surging food prices.

Japan's gross domestic product rose 2.7% year-on-year in the first quarter of 2023 thanks to accelerated business spending.

On a quarterly basis, the world's third largest economy grew 0.7% in January-March.

Kaynak:

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