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TOKYO (Reuters) – The Bank of Japan maintained its monetary parameters on Tuesday, but added wording stating it would "unhesitatingly" mitigate if the economy slows to achieve the goal of 2% inflation of the central bank.
As expected, BOJ has maintained its short-term interest rate target at -0.1% and is committed to directing 10-year government bond yields around 0%.
the BOJ has also kept intact its forward-looking forecast – or a central bank commitment to future monetary policy – that pledges to keep interest rates extremely low today "for a long time, at least until the end of the year. in the spring of 2020 ".
The decision to maintain its interest rate targets was taken by 7 votes to 2, with the members of the board dissenting, Goushi Kataoka and Yutaka Harada.
BOJ Governor Haruhiko Kuroda will hold a press conference at 15:30. (0630 GMT) to explain the decision.
In a quarterly review of its long-term projections, the BOJ reduced its inflation forecast for the current fiscal year ending in March 2020 to 1.0% from 1.0% previously.
(Report by Leika Kihara, Daniel Leussink, Kajimoto Tetsushi, Kaori Kaneko, Mari Saito and David Dolan, edited by Chris Gallagher)
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