Falling short of expectations, the Bank of Japan (BOJ) decided not to make any changes in the yield curve control (YCC) policy at its latest policy meeting.
The BOJ kept its key policy settings unchanged, leaving interest rates unchanged at -0.10% and targeting the 10-year Japanese government bond yield around 0%.
The central bank also made no changes to its guidance allowing the 10-year bond yield to move +/-0.50% as decided last month.
The disappointing results continued to push the yen lower against the US dollar to around 131.10, down around 2%, at the time of writing.
Investors' focus is now on Governor Haruhiko Kuroda's follow-up speech on today's policy decisions.
Why is this decision considered disappointing?
Last week, there were reports that the central bank will review the impact of its monetary policy and may take additional steps in its YCC.
As a result, it raised investor hopes to see the BOJ move to tighter policy and drove the yen to an 8-month high against the greenback.
