BOJ Holds 10-Year JGB Yield Cap at 0.5 Pct
Newsfrom JapanSociety Economy
Tokyo, Jan. 18 (Jiji Press)--The Bank of Japan decided Wednesday to hold its recently raised cap on 10-year Japanese government bond yields steady at 0.5 pct, resisting upward pressure on interest rates.
The decision was made by a unanimous vote at a meeting of the BOJ's Policy Board. The bank had seen the JGB yield limit, set as part of its yield curve control, breached repeatedly amid persistent bond selling from market players betting on a further rise in the cap.
However, BOJ Governor Haruhiko Kuroda said at a press conference after the meeting, "We don't think there is a need to expand the allowable range of long-term interest rates further."
Stressing the need to continue the bank's monetary easing measures, Kuroda said, "We're not yet in a situation in which we can achieve the 2 pct inflation target in a sustainable and stable way."
"It will take some time for interest rates to become stable," Kuroda noted, suggesting that it would be premature to evaluate the effects of the range expansion.
[Copyright The Jiji Press, Ltd.]