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Bank of Japan holds policy rate

Bank of Japan's policy board decided, in an 8-1 vote, to maintain its short-term interest rates at minus 0.1% and the 10-year government bond yields around 0%.

The central bank also said it will continue to purchase Japanese government bonds at more or less the current pace — an annual increase in the amount outstanding of its government bond holdings of about ¥80 trillion — to achieve its 2% inflation target.

BOJ said its inflation expectations have been "more or less unchanged", with year-over-year rate of change in the consumer price index at about 1%. It expects the CPI to continue to inch toward the 2% target on improving the output gap and higher medium- to long-term inflation expectations.

The central bank expects the economy, which grew 1.6% on annualized basis in the fourth quarter of 2017, to likely continue its moderate expansion. It added that domestic demand is likely to rise, and exports to continue a moderate upward growth trend on the back of firm growth in overseas economies.

Board member Goushi Kataoka was the sole dissenter, believing there was a low chance that inflation would rise toward the 2% target.

As of March 8, US$1 was equivalent to ¥106.12.