The Bank of Japan has opted to hold short-term interest rates, pointing to a moderate recovery in the economy but warning that “high uncertainties” remain in the outlook for activity and prices.
In a widely expected decision on Friday, the BoJ said its two-day monetary policy meeting had concluded with a unanimous decision to maintain the overnight call rate target at 0.25 per cent.
Japan’s economy, the central bank said in the statement, was likely to keep growing at a pace above its potential growth rate “as a virtuous cycle from income to spending gradually intensifies”.
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