URGENT: BOJ decides to make yield curve control program more flexible

The Bank of Japan decided Friday to make its controversial yield curve control program less rigid, allowing 10-year Japanese government bond yields to rise above its 0.5 percent cap.

At the end of a two-day policy meeting, the central bank said it will offer to buy 10-year government bonds at a fixed rate of 1.0 percent every business day in principle, up from 0.5 percent previously.

The tweaking of the program would help to address the side effects of keeping borrowing costs depressed and prevent the yen from weakening sharply.

In its fresh outlook report, the BOJ lifted the inflation outlook...