BOJ keeps monetary policy steady, leaves guidance intact

The Bank of Japan (BOJ) board members decided to keep the monetary policy settings unadjusted amid the ongoing Russia-Ukraine war, as they conclude their two-day meeting on Friday.

Key takeaways

BOJ maintains 10-year JGB yield target around 0%.

BOJ maintains short-term interest rate target at -0.1%.

BOJ made a decision on yield curve control by 8-1 vote.

BOJ board member Kataoka dissented to the decision on YCC.

BOJ leaves intact guidance that it expects short-, long-term policy interest rate to remain at present or lower levels.

Market reaction

In an initial reaction to the BOJ decision, USD/JPY is little change, keeping its range around 118.75, up 0.15% on the day.