The Bank of Japan has decided to leave unchanged the main parameters of its monetary policy after the conclusion of the two-day meeting. Highlights: The short-term interest rate on deposits of commercial banks with the Central Bank remained at minus 0.1% per annum. This means that commercial banks will pay for storing their funds in the Bank of Japan. The target yield of ten-year government bonds is about zero. The benchmark for the maximum yield of ten-year government bonds also remains at 1% per annum. The Bank of Japan has confirmed its intention to continue monetary stimulus amid high uncertainty both at home and abroad. The regulator is also ready to increase incentives, if necessary. The main goal of the Bank of Japan today is to achieve stable inflation at the level of 2%. However, it has not been possible to achieve this goal so far, and inflation in November was 3.3%. After the Bank of Japan announced its decision, the yen fell by 0.6% to ¥143.6 per dollar.
