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19.12.202303:54:00UTC+00Bank Of Japan Leaves Monetary Policy Unchanged

The Bank of Japan retained its massive monetary policy stimulus, as widely expected, on Tuesday.

The BoJ policy board, led by Governor Kazuo Ueda, unanimously decided to maintain a negative interest rate of 0.1 percent on current accounts that financial institutions maintain at the central bank.

The bank also decided to regard the upper bound of 1.0 percent for 10-year JGB yields as a reference in its market operations.

"With extremely high uncertainties surrounding economies and financial markets at home and abroad, the Bank will patiently continue with monetary easing while nimbly responding to developments in economic activity and prices as well as financial conditions," the bank said.

Capital Economics' economist Marcel Thieliant said he still expects policymakers to end negative rates in January and to phase out Yield Curve Control later in 2024.

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