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BoJ holds key interest rate steady, announces more easing

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Forexpros - The Bank of Japan kept its benchmark interest rate unchanged, in a widely expected move and announced additional monetary easing on Thursday.

In a statement, the BoJ said it was keeping its benchmark interest rate unchanged between a range of 0.0% to 0.1%, broadly in line with expectations.

A statement on monetary policy released after the announcement showed that the Bank of Japan's nine-man policy board voted unanimously to maintain the interest rate at its current level.

The BoJ raised its total asset purchase program to about JPY50 trillion yen from JPY40 trillion previously.

"Japan's economic activity has been picking up steadily, with an easing of the supply-side constraints caused by the country's March 11 earthquake, and should return to a moderate recovery path with production regaining traction," the central bank said.

The BoJ had moved its policy decision forward by one day, coinciding with the Ministry of Finance's intervention in the currency market to curb the high value of the yen.

Following the decision, the yen was down against the U.S. dollar, with USD/JPY jumping 3.04% to trade at 79.40.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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