Going against the world tide, Bank of Japan maintains ultra-low rates

Bank of Japan Governor Haruhiko Kuroda held firm with rock-bottom interest rates, defying an intensifying global wave of central bank tightening and concentrated market pressure on the yen and government bonds.

The central bank kept its policy settings for yield curve control and asset purchases, according to a statement on Friday, in line with the forecasts of almost all surveyed economists.

In a rare move, the bank added a reference to foreign exchange rates to its list of risks for the first time since 2012, following the yen’s rapid weakening to a 24-year low earlier this week. 

The currency whiplashed against the dollar