MNI BRIEF: BOJ On Hold; Makes 10-Yr Rate Moves More Flexible

The Bank of Japan board on Friday decided to increase the flexibility of the 10-year long-term policy interest rate, but kept yield curve control without changing both the short- and long-term policy interest rate targets, a statement released by the BOJ said on Friday.

“The BOJ will continue to allow 10-year JGB yields to fluctuate in the range of around plus and mins 0.5% point from the target level, while it will conduct yield curve control with greater flexibility, regarding the upper and lower bounds of the range as reference, not as rigid limits, in its market operations,” the Bank said. “The BOJ will offer to purchase 10-year JGBs at 1.0% every business day through fixed-rate purchase operations.”