BOJ Holds Rates Steady; Buys Assets
TOKYO (TheStreet) -- The Bank of Japan on Friday held overnight interest rates steady and detailed plans to buy assets, noting that economic recovery may be pausing.
The BOJ said in its monetary policy statement that it will encourage the uncollateralized overnight call rate to remain at around zero to 0.1%.
"Japan's economy still shows signs of a moderate recovery, but the recovery seems to be pausing," the bank said in the accompanying policy statement after its two-day meeting.
The BOJ also outlined purchases of exchange-traded funds that track the Tokyo Stock Price Index (TOPIX) or the Nikkei 225. The bank will also purchase Japanese real estate investment trusts raised AA or higher with no credit concerns.
Earlier this week, the U.S. Federal Reserve announced plans to purchase $600 billion in long-term Treasuries until the end of June 2011.
-- Written by Robert Holmes in Boston
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