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TOKYO, Dec 20 (Reuters) - The Bank of Japan kept monetary policy steady and offered a brighter view of the economy on Tuesday, signalling its conviction that a weak yen and a rebound in overseas demand will heighten prospects for a solid recovery.
“Japan’s economy continues to recover moderately as a trend,” the central bank said in a statement announcing its policy decision.
That was more upbeat than its assessment made on Nov. 1, when it said that while Japan’s economy continued to recover moderately as a trend, some weaknesses were seen in exports and output.
In a widely expected move, the BOJ maintained the 0.1 percent interest it charges on a portion of excess reserves that financial institutions park with the central bank.
At the two-day policy meeting that ended on Tuesday, it also left unchanged its 10-year government bond yield target of around zero percent.
BOJ Governor Haruhiko Kuroda will hold a news conference at 3:30 p.m. (0630 GMT) to explain the policy decision. (Reporting by Leika Kihara, Stanley White, Tetsushi Kajimoto and Minami Funakoshi; Editing by Chris Gallagher)