BOJ Allows Greater JGB Yield Fluctuations
Newsfrom JapanEconomy Politics
Tokyo, March 19 (Jiji Press)--The Bank of Japan said Friday it will allow the 10-year Japanese government bond yield to fluctuate between around plus and minus 0.25 pct.
The decision means that the central bank will expand its tolerable range of JGB yield fluctuations. Previously, Governor Haruhiko Kuroda and other BOJ policymakers had said the bank tolerates yield swings to around plus and minus 0.2 pct.
The BOJ guides the key 10-year JGB yield around zero pct. Friday's move signaled that the bank attaches more importance to market functions while curbing what it sees as an excessive rise in interest rates.
The bank announced the decision as part of measures to make its monetary easing policy sustainable after its board reviewed the policy at a two-day meeting.
As part of the measures, the BOJ abolished the annual targets for its purchases of exchange-traded funds and real estate investment trusts, a decision aimed at allowing it to reduce the purchases when market conditions improve.
[Copyright The Jiji Press, Ltd.]