Bank of Japan holds rates as inflation remains low

TOKYO: The Bank of Japan kept its ultra-loose monetary policy in place Thursday as inflation remains stubbornly low in the world's third-biggest economy, bucking a trend of gradually tighter policy in major economies.

The bank said it would purchase 10-year government bonds so that long-term interest rates would remain "at around zero percent".

The BoJ will also keep charging a negative interest rate on some accounts held by financial institutions at the central bank in a bid to prompt lending by commercial banks.

Investors will scrutinise remarks by BoJ chief Haruhiko Kuroda later Thursday for clues about a timeline for pulling back its huge asset-buying programme.

Investors will also watch out for possible indications on whether Kuroda will stay on as he nears the end of his five-year term.

Prime Minister Shinzo Abe has reportedly asked him to stay on.