Japan’s central bank on Friday pledged greater flexibility in its target range for 10-year Japanese government bond yields, while keeping its ultra loose interest rate intact and revising core consumer inflation forecast upward for the current fiscal year, CNBC reported.
In a policy statement, the Bank of Japan said it will retain the 50 basis point limit on 10-year Japanese government bond yields either side of its 0% target. It also kept short-term interest rates at minus 0.1%.
However, it said that it will enforce the cap with greater flexibility and consider the upper bound as a reference point, not a rigid limit.
It will also offer to purchase 10-year JGBs at 1% every business day through fixed-rate operations, unless no bids are submitted.