TOKYO, Sept 22 (Reuters) - The Bank of Japan maintained ultra-low interest rates and dovish policy guidance on Thursday, as it seeks to reassure marke

BOJ keeps ultra-low rates, remains global outlier despite weak yen

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2022-09-22 04:00:06

TOKYO, Sept 22 (Reuters) - The Bank of Japan maintained ultra-low interest rates and dovish policy guidance on Thursday, as it seeks to reassure markets that it will continue to swim against a global tide of central banks tightening monetary policy to combat soaring inflation.

The decision came after the U.S. Federal Reserve delivered its third straight rate increase of 75 basis points on Wednesday and signalled more hikes, underscoring its resolve not to let up in its battle to contain inflation. read more

As widely expected, the BOJ kept unchanged its -0.1% target for short-term interest rates, and 0% for the 10-year government bond yield by a unanimous vote.

The central bank also decided to phase out a pandemic-relief loan scheme and instead expand a liquidity operation targeting a broader range of corporate funding-needs.

"The BOJ expects short- and long-term policy interest rates to remain at their present or lower levels," the central bank said in a statement announcing the rate decision, making no change to its dovish guidance.

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