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Members of the Bank of Japan’s Monetary Policy Board said that the country’s economy is trending in a positive direction but remains at risk due to Covid-19 and its variants, minutes from the bank’s meeting on October 27 and 28 revealed on Wednesday.

To that end, the members said the central bank will continue its current favorable monetary policy until the country reaches its price stability target of 2 percent. Interest rates will remain at current levels for the time being, and the members did not rule out additional stimulus if they deemed it necessary.

They added that the depreciation of the yen has positively affected Japan’s economy through higher stock prices and an increase in profits.

At the meeting, the BoJ maintained its monetary stimulus and downgraded its growth outlook for the current fiscal year as supply-side constraints dampened production and exports amid weak consumption.

The board voted 8-1, to hold the interest rate at -0.1 percent on current accounts that financial institutions maintain at the central bank. The bank will continue to purchase a necessary amount of Japanese government bonds without setting an upper limit so that 10-year JGB yields will remain at around zero percent.

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