The Bank of Japan maintained its uncollateralized overnight call rate steady at a range of 0 to 0.1% by a unanimous vote. The Bank said it "commits itself to continuing the virtually zero interest rate policy until it judges that price stability is in sight on the basis of the "understanding of medium- to long-term price stability." In order for Japan's economy to overcome deflation and return to a sustainable growth path with price stability, the Bank will continue to consistently make contributions as the central bank by pursuing powerful monetary easing through the comprehensive monetary easing measures as described above, ensuring financial market stability, and providing support to strengthen the foundations for economic growth."
The Bank of Japan also held its monetary policy interest rate unchanged in July this year, and announced additions to its quantitative easing program during its August meeting. The Bank last changed its asset purchase program in March this year, when it added a further 5 trillion yen to its target. Japan reported annual headline consumer price inflation of 0.2% in July and June, and 0.3% in both May and April, as Japan finally begins to see some positive inflation figures. The Bank has previously forecast real GDP growth of 0.2-0.6% in fiscal 2011, and 2.5-3.0% in fiscal 2012. The Japanese Yen (JPY) last traded around 77.5 against the USD, and had gained around 8% against the US dollar this year.
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