Bank of Japan leaves key policy rate unchanged at 0.5%

The rate was raised from 0.25 per cent to 0.5 per cent in January. The central bank has now kept that unchanged for five consecutive policy-setting meetings.

The decision was arrived at through a 7-2 vote.

At the two-day meeting that ended today, the central bank decided to sell its holdings of exchange-traded funds (ETF) in the market at an annual pace of around 330 billion yen ($2 billion).

It also decided to sell real-estate investment trusts (REIT) at an annual pace of around 5 billion yen.

Japan's economy has recovered moderately, although some weakness has been seen in part, the bank’s monetary policy statement said.

Exports and industrial production have continued to be more or less flat as a trend, although there has been some front-loading and a subsequent reactionary decline, due to the increase in US tariffs, it noted.

Corporate profits have remained at high levels on the whole, although downward effects due to tariffs have been seen in manufacturing. Business fixed investment has been on a moderate increasing trend.

Public investment has been more or less flat, while financial conditions have been accommodative, it added.

Fibre2Fashion News Desk (DS)