-
BOJ seeks to make its ammunition last longer as options dwindle
The Bank of Japan pledged to keep its massive stimulus in place but made tweaks to reduce adverse effects of its policies on markets and commercial banks, reflecting the central bank’s view that its inflation target remains stubbornly out of reach. At a two-day rate review that ended on Tuesday, the Bank of Japan kept its interest rate targets steady but for the first time adopted a forward guidance on future policy, saying it will keep rates “very low” for an “extended period of time.” As its huge purchases dry up market liquidity and efforts to cap bond yields face difficulty, the central bank also said ... (full story)