Economy

BOJ Adjusts Yield Curve Control and Redefines Long-Term Rate Cap, According to Reuters

TOKYO (Reuters) – The Bank of Japan (BOJ) has once again adjusted its bond yield control, defining 1.0% as an "upper bound" with some flexibility, rather than a strict limit.

According to a statement from the central bank, the BOJ will view the 1.0% threshold for the 10-year Japanese government bond (JGB) yield as a reference point while continuing large-scale bond purchases and agile market operations.

As anticipated, the BOJ maintained a 0.1% interest rate on excess reserves held by financial institutions at the central bank, along with a target of 0% for the 10-year government bond yield as part of its yield curve control (YCC) strategy.

(Note: This article has been revised to correct a typographical error in the second paragraph.)

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