BOJ keeps ultra-low rates, forecast of inflation slowdown

The Bank of Japan (BOJ) on Friday maintained ultra-low interest rates and its forecast that inflation will slow later this year, underscoring its focus on supporting a fragile economic recovery.

As widely expected, the BOJ kept intact its short-term interest rate target at -0.1% and that for the 10-year bond yield around 0% at the two-day meeting that ended on Friday.

The BOJ also made no changes to a 0.5% cap for the 10-year yield set under its yield curve control (YCC) policy.