BOJ keeps interest rate targets unchanged, as expected
No change to dovish policy guidance
BOJ says watching impact of yen moves on economy
Gov Kuroda says rapid yen falls heighten economic uncertainty

TOKYO, June 17 Reuters The Bank of Japan maintained ultralow interest rates on Friday and its guidance to keep borrowing costs at present or lower levels, signaling its resolve to focus on supporting the economy39;s tepid recovery from the COVID19 pandemic.

The decision to stand pat was widely expected, and highlighted the BOJ39;s position as the world39;s last dovish central bank, as its global peers aggressively raise interest rates to curb surging inflation.

However, in a nod to the hit that the yen39;s recent sharp declines may have on the economy, the BOJ said it must closely watch the impact exchangerate moves could have on the economy.

Recent rapid falls in the yen heighten the uncertainty on the outlook and make it difficult for companies to set business plans. It39;s therefore negative for the economy and undesirable, BOJ Governor Haruhiko Kuroda told a news conference.

At the twoday policy meeting that ended on Friday, the BOJ maintained its 0.1 target for shortterm rates and its pledge to guide the 10year yield around 0 by a 81 vote.

There was speculation the BOJ could tweak policy to address currency moves, but the answer from the central bank was no, said Shotaro Kugo, an economist at Daiwa Institute of Research.

The BOJ sent out a message that…