BOJ keeps shortterm rate target steady at 00.1
BOJ says to stick with bondbuying guidance made in March
Board projects inflation to stay near 2 in coming years
Governor Ueda expected to brief media on decision 0630 GMT

TOKYO, April 26 Reuters The Bank of Japan kept interest rates around zero on Friday and highlighted a growing conviction that inflation was on track to durably hit 2 in coming years, signalling its readiness to hike borrowing costs later this year.

But a lack of clear guidance on the future rate hike path triggered a broadbased decline in the yen , pushing it down to a fresh 34year low past 156 to the dollar and keeping markets on edge over the chance of currency intervention.

The central bank also stuck to its guidance made in March to keep buying government bonds around the current pace, dashing hopes by some traders that it could soon taper purchases partly to slow the yen39;s declines.

The currency takeaway is certainly disappointment from the lack of guidance from the bank, said Rodrigo Catril, senior FX strategist at National Australia Bank in Sydney.

To me the currency market is telling us it believes that the BOJ policy is too loose and hence why the currency is so weak. The Bank has the ability to do something about that by changing its policy, and if it39;s not going to change the policy, then we shouldn39;t expect the yen to strengthen.

As widely expected, the BOJ maintained its shortterm interest rate target at a range of 00.1, which…