BOJ leaves policy unchanged, decides to scale back pandemic-stimulus after March

At its December monetary policy meeting, the Bank of Japan (BOJ) left its policy settings unadjusted once again but decided to scale back pandemic-stimulus after March.

The BOJ maintained its short-term rate target at -0.1% and that for 10-year bond yields around 0%.

Markets had priced in the Japanese central bank to dial back emergency pandemic-funding, as the economy is gradually healing from the coronavirus crisis.

Key takeaways

BOJ made decision on yield curve control by 8-1 vote.

BOJ board member Kataoka dissented to decision on YCC.