BOJ keeps yield control policy unchanged

BOJ keeps yield control policy unchanged

TOKYO (Reuters) – The Bank of Japan on Wednesday maintained ultra-low interest rates, including its 0.5% cap for the 10-year bond yield, defying market expectations it would phase out its massive stimulus programme in the wake of rising inflationary pressure.

At a two-day policy meeting, the BOJ kept intact its yield curve control (YCC) targets, set at -0.1% for short-term interest rates and around 0% for the 10-year yield, by a unanimous vote.

The central bank also made no change to its guidance that allows the 10-year bond yield to move 50 basis points either side of its 0% target.

The decision follows the BOJs surprise move last month to double the yield band, a tweak that analysts say has failed to correct market distortions caused by its heavy bond buying.

(Reporting by Leika Kihara, Tetsushi Kajimoto, Kantaro Komiya and Daniel Leussink; Editing by Sam Holmes)

Gold Price Forecast – Gold Pulls Back From the Highs of The DayEUR/USD Bears Target Sub-$1.0750 on ECB Policy ChatterXRP Set for a Choppy Session as SEC v Ripple Case Takes Center StageCrude Oil Price Forecast – Crude Oil Markets Break NecklineNASDAQ, S&P 500, Dow Jones – Tech Stocks Gain Ground As Treasury Yields DeclineBest 5 Dividend Aristocrat Stocks for 2023LoadingLoadingLoading