Investing.com - The Bank of Japan held policy steady as expected on Tuesday in a 7 to 2 vote, including keeping asset purchases at ¥80 trillion annually.
The BoJ will seeks to stabilize the 10-year government bond yield, the benchmark for long-term borrowing costs,
around zero percent and keep the overnight interest rate around -0.1%. The goal is to correct the excessively flat yield curve caused by its negative interest rate policy that took effect in February.
The BoJ will also maintain its inflation-overshooting commitment, continuing monetary easing until inflation rises to 2% from slight drops now and becomes anchored around that level.
The nine-member board also slightly revised up its assessment of Japan's lukewarm economy, saying it "has continued its moderate recovery trend." It was the first upgrade since May 2015 in light of firmer indicators -- a pickup in exports and factory output as well as improving emerging economies.
But risks to the BoJ's outlook remain unchanged: Developments in emerging and commodity-exporting countries, particularly China; developments in the U.S. economy and the impact of its monetary policy on global financial markets.