TOKYO—The Bank of Japan (BOJ) maintained ultra-low interest rates on Friday and held off making changes to its controversial bond yield control policy, leaving options open ahead of a leadership transition in April.
Though widely expected by most analysts, the decision sent the yen and local bond yields tumbling as some investors unwound bets that retiring central bank governor Haruhiko Kuroda would tweak the yield curve control (YCC) at his last policy meeting.
Kuroda leaves the bank with a mixed legacy: his massive stimulus is praised for pulling the economy out of deflation, but has strained bank profits and distorted market function with prolonged low interest rates. And the country’s economic growth has remained tepid….