Finance
BOJ keeps interest rates steady, sticks to upbeat economic view
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TOKYO (Reuters) – The Bank of Japan kept interest rates steady on Friday and maintained its view the economy remained on track for a moderate recovery.
In a widely expected move, the central bank left unchanged its overnight call rate target at 0.25% by a unanimous vote.
BOJ Governor Kazuo Ueda will hold a news conference at 3:30 p.m. (0630 GMT) to explain the decision.
The BOJ ended negative interest rates in March and raised its short-term policy rate to 0.25% in July on the view that the likelihood of inflation sustainably hitting its 2% target was heightening.
(Reporting by Leika Kihara; Editing by Chang-Ran Kim)
Monetary policy refers to the actions taken by a central bank to manage the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage of the principal amount. They influence economic activity by affecting consumer spending and investment.
A central bank is a national financial institution that oversees the monetary system for a country or group of countries. It manages currency, money supply, and interest rates, and often regulates the banking sector.
Economic growth is an increase in the production of goods and services in an economy over a period of time, typically measured by the rise in Gross Domestic Product (GDP).
Financial stability refers to a condition in which the financial system operates effectively, allowing for the smooth functioning of financial markets, institutions, and the economy, minimizing the risk of financial crises.
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