Bank of Japan keeps policy steady, removes timeframe for price goal

TOKYO (Reuters) – The Bank of Japan kept monetary policy steady on Friday and removed a phrase on the timeframe for achieving its 2 percent inflation target, suggesting it is no rush to reach its elusive price goal with the economy in good shape.

In a widely expected move, the BOJ maintained its short-term interest rate target at minus 0.1 percent and a pledge to guide 10-year government bond yields around zero percent.

The BOJ left its inflation forecast for next fiscal year unchanged from three months ago, at 1.8 percent. It also projected inflation of 1.8 percent for the following fiscal year ending in March 2021.

The decision on maintaining its interest rate targets was made by an 8-1 vote with board member Goushi Kataoka dissenting.

BOJ Governor Haruhiko Kuroda will hold a news conference at 3:30 p.m. (0630 GMT) to explain the policy decision.

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