Bank Of Japan Holds Key Rate At 0.1%

The policy board of the Bank of Japan on Tuesday unanimously decided to retain the overnight call rate at 0.1%, in line with market expectations.

The bank maintained its economic assessment, saying there were further signs of a "moderate" recovery. "With regard to prices, based on the assumption that medium to long-term inflation expectations remain stable, the year-on-year rate of decline in the CPI (excluding fresh food) is expected to slow as the aggregate supply and demand balance improves gradually," the BOJ said.

Regarding the outlook, the BOJ said there were some upside risks such as faster growth in emerging countries. "On the other hand, against the backdrop of increased uncertainty about the future, especially for the U.S. economy, and associated instability in the foreign exchange and stock markets, attention should be paid to downside risks to Japan's economy," it added.

The bank again repeated its vow to fight deflation and promised to maintain the extremely accommodative financial environment. (Provided by RTTNews)