Tokyo: The Bank of Japan kept interest rates unchanged on Wednesday and maintained its assessment on the economy, which it said was still sluggish.
In a widely expected move, the central maintained its overnight call rate target at 0.5 % by a unanimous vote.
“Tensions in global financial markets have increased and there are downside risks to the world economy,” the BoJ said.
“While Japan’s money market has been functioning well, the bank will continue to strive to ensure smooth settlement of funds and maintain market stability taking into account the recent developments among US financial institutions and their impact.”
BoJ Governor Masaaki Shirakawa will hold an embargoed news conference later in the day, with his comments expected to come out some time after 4:15 pm.
The nine-member board currently has two vacancies, including one for a deputy governor.