BOJ keeps yield control policy unchanged
18/01/2023 02:40
TOKYO, Jan 18 (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 BOJ's 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)
((leika.kihara@thomsonreuters.com; +813-6441-1828; Reuters
Messaging: leika.kihara.reuters.com@reuters.net))