Bank of Japan (BOJ), the country’s central bank, kept its much-watched benchmark rate unchanged at a negative level during a policy meeting, but cited growing risks that threaten the global economy.
In a decision published on the BOJ website Thursday, majority of the policymakers or 7 out of 9 maintained the policy-rate balances at -0.1%.
The BOJ will also continue buying 10-year bonds issued by the Japanese government to bring the yields at around 0% (zero percent), the statement said.
“Risks to the (global economic) outlook include the following: the US macroeconomic policies and their impact on global financial markets; the consequences of protectionist moves and their effects; developments in emerging and commodity exporting countries such as China, including the effects of the two aforementioned factors,” the BOJ said in the statement.
Global policymakers are under pressure to ease monetary policy in the light of the protracted trade war between the world’s two biggest economies that threatened global trade and the economy.
The European Central Bank and the US Federal Reserve have already signified their openness to cut rates in the face of the weakening global outlook.