Japan's Central Bank Keeps Policy Rate

(MENAFN- Kuwait News Agency (KUNA)) TOKYO, Sept 19 (KUNA) -- Japan's central bank decided Friday to leave its short-term policy rate unchanged at around 0.5 percent, while announcing sales of exchange-traded funds (ETFs) and Japanese real estate investment trusts (J-REITs).
At the end of its two-day policy meeting, Bank of Japan's (BOJ) Governor Kazuo Ueda and his eight board colleagues voted 7-2 to maintain the benchmark rate steady for the fifth straight meeting, according to a statement released by the central bank.
The BOJ also decided to begin selling its ETF and J-REIT holdings at book value, with an annual pace of about JPY 330 billion (USD 2.2 billion) for ETFs and JPY 5 billion (USD 33 million) for J-REITs, the central bank said, adding that the pace may be reviewed depending on market conditions.
Meanwhile, the BOJ said in its statement that Japan's economy is likely to moderate as trade and other policies in each jurisdiction slow overseas economies and weigh on corporate profits, although accommodative financial conditions are expected to provide support.
It added that growth is expected to pick up as overseas economies return to a moderate growth path.
The statement also cautioned against uncertainties, saying, "There are various risks to the outlook. In particular, it remains highly uncertain how trade and other policies in each jurisdiction will evolve and how overseas economic activity and prices will react to them." (end)
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