The Bank of Japan (BOJ) did not change its monetary policy at its meeting today.

The BOJ did not change its loose monetary policy despite the recent depreciation of the yen and the rise in inflation. BOJ kept the policy rate at -0.10 percent while maintaining the yield around 0 percent on the 10-year bond. The statement said that short- and long-term interest rates will remain at current or lower levels.

The bank also revised its inflation forecasts. The core inflation forecast was raised from 1.1 percent to 1.9 percent. Inflation expectations for the 2023 and 2024 fiscal years were 1.1 percent.

Inflation in the country recorded the largest increase in 26 months with 0.8 percent in March compared to the same period of the previous year. Inflation is expected to continue to rise and exceed 2 percent in April.