The Bank of Japan left its key short-term interest rate unchanged at -0.1% and maintained the target for the 10-year Japanese government bond yield at around 0% during its June meeting by a 7-1 vote. The central bank also extended by six months the September deadline for its pandemic-relief program. At the same time, policymakers said that it will launch a new scheme to provide funds to financial institutions that invest or extend loans in relation with climate change issues. The BoJ mentioned that Japan’s economy has picked up as a trend, although it has remained in a severe situation due to the pandemic. On the price front, the yoy rate of change in the CPI has been at around 0% recently due to a rise in oil prices, while inflation expectations have been more or less unchanged.
