Bank of Japan persists with ultra-low interest ratesSTRONG WARNING: A finance official suggested a possible stealth intervention to prop up the yen, as its descent nears 1998 levels, when authorities last boosted the currencyBloombergThe Bank of Japan (BOJ) continued to stand by its ultra-low interest rates as it further isolated itself from a global wave of policy tightening, fueling a slide in the yen to a fresh 24-year low and ramped-up warnings of possible intervention. The national flag flies on the roof of the Bank of Japan headquarters in Tokyo yesterday. The governor has repeatedly signaled that there is a long way to go before policy in Japan can be normalized. That means the BOJ is sticking with its short-term interest rate of minus-0.1 percent and its cap on long-term bond yields. In the past week, the central bank has spent about ￥2.9 trillion (US$20.3 billion) on fixed-rate purchases of bonds to defend the 0.25 percent cap.
