Japan leaves interest rates unchanged, increases flexibility on yield curve control
Bank of Japan keeps short-term interest rate target steady at minus 0.1%, in line with market forecasts
ANKARA
The Bank of Japan on Tuesday decided to leave its interest rates at ultra-low levels and further increase flexibility in the conduct of yield curve control.
The short-term interest rate target was unchanged at minus 0.1% and 10-year bond yields at around 0% in its October meeting, in line with market forecasts.
The target level of 10-year Japanese government bond yields will be kept at around 0%, but the bank will conduct yield curve control with the upper bound of 1% as a reference, according to the statement.
The bank said strictly capping long-term interest rates via its fixed-rate buying operations at 1% each day would have a strong impact, but could also have major side effects.
"Given this, it decided to conduct yield curve control mainly through large-scale JGB (Japanese government bond) purchases and nimble market operations," it added.
The Japanese yen weakened beyond the 150-per-dollar mark following the decision.
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