TOKYO (Reuters) – The Bank of Japan said on Tuesday it will widen the band at which it will allow the 10-year government yield to move around its 0% yield target, as part of fine-tuning measures to address the cost of prolonged monetary easing.
The BOJ also decided to sharply increase the amount of government bond buying, it said in a policy statement.
As widely expected, the BOJ kept unchanged its -0.1% target for short-term interest rates, and 0% for the 10-year government bond yield by a unanimous vote.
It also maintained its policy guidance that pledges to ramp up stimulus as needed, and projecting that short- and long-term interest rates will move at “current or lower levels.”
(Reporting by Leika Kihara and Tetsushi Kajimoto; Editing by Sam Holmes)