Japan’s central bank holds steady on interest rate, stimulus

Specialist Edward Loggie works at his post as a television screen on the floor of the New York Stock Exchange shows the decision of the Federal Reserve, Wednesday, March 15, 2017. The Fed's key short-term rate is rising by a quarter-point to a still-low range of 0.75 percent to 1 percent. (AP Photo/Richard Drew) Specialist Edward Loggie works at his post as a television screen on the floor of the New York Stock Exchange shows the decision of the Federal Reserve, Wednesday, March 15, 2017. The Fed's key short-term rate is rising by a quarter-point to a still-low range of 0.75 percent to 1 percent. (AP Photo/Richard Drew)

By Associated Press March 15, 2017 2 min read

TOKYO (AP) – Japan’s central bank opted Thursday to keep its monetary policy steady, as the U.S. Federal Reserve tightens and European Central Bank edges in that direction.

The Bank of Japan ended a policy meeting by keeping the minus 0.1 percent benchmark interest rate unchanged while working toward a 2 percent inflation rate target.

The outcome was as expected. By midday, Japan’s Nikkei 225 stock index was flat, at 19,578.06.

The central bank is buying about 80 trillion yen ($700 billion) a year of Japanese government bonds to inject more cash into the economy. Interest rates are near zero, the aim is to use expectations of inflation to stimulate more spending and borrowing by businesses and consumers.

The BOJ said in a statement that the economy, which grew at a 1 percent annual pace in 2016, was still on a “moderate recovery trend.”