At its latest meeting earlier today, the Bank of Japan (BOJ) chose to keep its monetary policy unchanged amid hopes for improvement in economic conditions in the coming months. The central bank also hinted that additional stimulus may not be required in the near future to offset the economic fallout from the coronavirus pandemic.

However, Japan’s economy continues to face several downside risks, mainly due to the pandemic, and BOJ has confirmed its readiness to tackle any such challenges with additional monetary support if the economy is further impacted. For now, the BOJ has held rates steady at -0.1% and targets 10-year government bonds yields to be held around 0.

In its official statement, the central bank notes, “Japan’s economy has started to pick up with economic activity resuming gradually, although it has remained in a severe situation due to the impact of the novel coronavirus (COVID-19) at home and abroad. Overseas economies also have started to pick up from a state of significant depression. In this situation, exports and industrial production have turned to a pick-up.”