TOKYO Dec 18 (Reuters) - The Bank of Japan on Friday extended its fund-aid scheme for firms hit by the coronavirus pandemic and pledged to begin an examination on more effective ways to achieve its 2% inflation target, as a renewed spike in infections threatened to undermine a fragile recovery. As widely expected, the central bank kept monetary policy steady including its pledge to guide short-term interest rates at -0.1% and 10-year bond yields around zero. Here’s how some Tokyo-based analysts have reacted to the probe on ways to hit the CPI target: “Today’s surprise was the announcement of its plan to review its monetary easing. That would be in line with recent moves by ECB and Fed to examine the course of monetary policy. The BOJ must have thought it would be left behind in the global monetary policy trend if it did not follow suit.” “As the BOJ says, it won’t change the current policy framework but review components such as its ETF buying, bond purchases and its view on what constitutes an appropriate yield curve.” “It may lead to a modification in its ETF purchases ... A rate hike is unlikely, while deepening negative interest rates is not on the cards either.” DAIJU AOKI, JAPAN’S REGIONAL CHIEF INVESTMENT OFFICER, UBS WEALTH MANAGEMENT: “The communication regarding forward guidance is important. Still, the BOJ will stick to its 2% target. I don’t expect a lowering of that target.” “I think a term adjustment in the forward guidance is one thing. The other thing which could be more important is that the BOJ will focus more on stimulating corporate investment. Prime Minister Suga would like to increase investment for the digitalisation and in green areas. So the BOJ would like to focus more on the corporate financing rather than purchasing risk assets.” “The BOJ’s decision to assess its monetary policy to achieve its 2% price target suggests that the central bank has no intention to change its price target.” “Depending on the findings, the BOJ may need to change its monetary easing steps. But with its tools limited, what’s important is for the BOJ to show its determination to top up stimulus if needed. “More than four years have passed since the previous assessment in September 2016, and since then I thought for a long time that doing a review was necessary.” “As this is an examination of measures, we don’t know its contents, but my impression is that this may be about the (BOJ’s) purchases of exchange traded funds.”