BOJ keeps policy steady, cuts view on exports and output

[TOKYO] The Bank of Japan kept monetary policy steady on Friday and offered a bleaker assessment of exports and output, nodding to heightening overseas risks that could threaten to derail a fragile economic recovery.

The central bank also modified its view on Japan's overall economy, pointing to the impact from slowing overseas growth.

In a widely expected move, the BOJ maintained its short-term interest rate target at minus 0.1 per cent and a pledge to guide 10-year government bond yields around zero per cent.

The decision on maintaining its interest rate targets was made by a 7-2 vote with board members Goushi Kataoka and Yutaka Harada dissenting.

The central bank said exports were showing some weakness recently. At its previous review in January, it had said they were "increasing as a trend".

BOJ Governor Haruhiko Kuroda will hold a news conference at 3.30 pm (0630 GMT) to explain the policy decision.

REUTERS