BOJ Decides to Modify Conduct of Yield Curve Control
Tokyo, Dec. 20 (Jiji Press)--The Bank of Japan decided Tuesday to modify the conduct of yield curve control, expanding the tolerable range of 10-year Japanese government bond yield fluctuations from the target level of around zero pct to between around plus and minus 0.5 percentage points.
The range was previously set at between around plus and minus 0.25 percentage points.
While maintaining the framework of its monetary easing policy centering on yield curve control, the BOJ decided on the tolerable range modification unanimously at a two-day meeting of its Policy Board that ended the same day.
This is the first expansion of the tolerable range since March 2021, when the BOJ expanded the range from between around plus and minus 0.2 percentage points, marking a de facto interest rate hike by the Japanese central bank.
In a statement released after meeting, the central bank said that the modification is intended to "improve market functioning and encourage a smoother formation of the entire yield curve, while maintaining accommodative financial conditions."
[Copyright The Jiji Press, Ltd.]