The Bank of Japan has kept monetary policy on hold but hinted at action in October as it frets about a slowdown in the global economy.
Japan’s central bank on Thursday held overnight interest rates at minus 0.1 per cent, its target for ten-year bond yields at around zero per cent, and the pace of its asset purchases at a pace of ￥80tn ($740bn) a year.
But the bank gave an explicit warning that it is concerned about risks to the economic recovery and promised a review at its next meeting, after a planned hike in Japan’s consumption tax from 8 per cent to 10 per cent has gone ahead.
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