BOJ keeps policy steady; newcomer signals desire for future easing
New board member Goushi Kataoka dissented from the BOJ board`s decision to maintain its interest rate targets, arguing that the BOJ should buy government bonds so that 15-year JGB yields would remain at less than 0.2%.
The Bank of Japan kept monetary policy steady on Tuesday even as it slightly cut its inflation forecast for the current fiscal year, signalling its conviction a solid recovery will gradually accelerate inflation toward its 2 percent target.
But new board member Goushi Kataoka dissented from the BOJ board`s decision to maintain its interest rate targets, arguing that the BOJ should buy government bonds so that 15-year JGB yields would remain at less than 0.2 percent.
"If there were a delay in the timing of achieving the price target due to domestic factors, the BOJ should take additional easing measures," Kataoka said, according to a statement by the central bank on its policy decision.
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Kataoka did not make any proposal to top up stimulus, however, defying expectations he could do so after his decision last month to vote against keeping policy steady.
In a widely expected move, the BOJ maintained the 0.1 percent interest it charges on a portion of excess reserves that financial institutions park at the central bank.
At the two-day policy meeting that ended on Tuesday, it also kept its yield target for 10-year Japanese government bonds around zero percent.
The decision on maintaining interest rate targets was made by an 8-1 vote.
BOJ Governor Haruhiko Kuroda will hold a news conference at 3:30 p.m. (0630 GMT) to explain the policy decision.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)