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TOKYO (Reuters) – The Bank of Japan kept monetary policy steady on Thursday and slightly upgraded its view on the economy, suggesting that no immediate expansion of stimulus was needed to combat the coronavirus pandemic.
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Markets are focusing on what BOJ Governor Haruhiko Kuroda will say at his post-meeting briefing on how the central bank could work with new Prime Minister Yoshihide Suga to support the economy with its dwindling policy tool-kit.
As widely expected, the BOJ maintained its -0.1% short-term interest rate target and a pledge to cap 10-year government bond yields around zero.
It also made no major tweaks to its asset-buying and lending programmes for easing corporate funding strains.
“Japan’s economy remains in a severe state