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.