Bank Of Japan Keeps Rate Unchanged

(RTTNews) - The Bank of Japan retained its key interest rate, as widely expected, amid heightened political uncertainty.

The policy board voted 7-2 to hold the uncollateralized overnight call rate to remain at around 0.5 percent, the bank said in a statement.

Previously, the BoJ had raised the benchmark rate to the current level from 0.25 percent in January.

Also, the board unanimously decided to dispose its holdings of exchange-traded funds and Japan real estate investment trusts, without destabilizing effects on the financial markets.

Further, policymakers expect economic growth to moderate, as trade and other policies lead to a slowdown in overseas economies and to a fall in domestic corporate profits. Thereafter, Japan's economic growth is likely to rise, with overseas economies returning to a moderate growth path, the bank said.