The Bank of Japan sparked a sharp slide in the yen against the dollar Thursday, with the exchange rate hitting the ¥130 mark, after it held its ground amid a global wave of interest-rate hikes by leaving its monetary stimulus unchanged and indicating that faster price growth in the coming year won’t last.
The central bank kept its yield curve control settings and the scale of its asset purchases unchanged, according to a statement. The decision had been widely expected among economists despite ongoing speculation the BOJ might take action in light of the recent slide in the yen to a two-decade low.
The BOJ said it would carry out fixed-rate bond buying every business day as it firmed up its resolve to defend its target on 10-year yields as part of its stimulus measures.