/ AFP/
TOKYO, Japan (AFP) — The Bank of Japan kept its ultra-loose monetary policy in place Thursday as inflation remains stubbornly low in the world’s third-biggest economy, bucking a trend of gradually tighter policy in major economies.
The bank said it would purchase 10-year government bonds so that long-term interest rates would remain “at around zero percent.”
The BoJ will also keep charging a negative interest rate on some accounts held by financial institutions at the central bank in a bid to prompt lending by commercial banks.
Investors will scrutinize remarks by BoJ chief Haruhiko Kuroda later Thursday for clues about a timeline for pulling back its huge asset-buying program.
Investors will also watch out for possible indications on whether Kuroda will stay on as he nears the end of his five-year term.
Prime Minister Shinzo Abe has reportedly asked him to stay on.
© Agence France-Presse