Japan's central bank keeps monetary policy, economic view

TOKYO, Sept 19 (KUNA) -- Japan's central bank said Wednesday it will maintain its monetary easing measures to achieve a two-percent inflation goal, and left its assessment of the country's economy unchanged.
At a two-day policy meeting, Bank of Japan's (BOJ) Governor Haruhiko Kuroda and his eight board colleagues voted by 7 to 2 to maintain "the current extremely low levels of short- and long-term interest rates for an extended period of time," holding to forward guidance adopted in July, according to a statement released by the BOJ. The central bank also said it will keep yields on benchmark 10-year government bonds at around zero percent, but added that the yields "may move upward and downward to some extent mainly depending on developments in economic activity and prices." The BOJ will continue to buy the government bonds an at annual pace of about JPY 80 trillion (USD 712 billion) in a flexible manner, it said.
The policymakers kept their assessment of the world's third-largest economy, saying, "Japan's economy is expanding moderately, with a virtuous cycle from income to spending operating." Exports have been rising and business fixed investment has continued on an increasing trend with corporate profits and business sentiment improving, according to the BOJ.
"Private consumption has been increasing moderately, albeit with fluctuations, against the background of steady improvement in the employment and income situation," it said. (end) mk.rk