BOJ Overhauls Policy, sets yield curve Target

The Bank of Japan on Wednesday decided to adopt a target for long-term interest rates in an overhaul of its massive stimulus programme.

 

The BOJ maintained the 0.1 percent negative interest rate it applies to some of the excess reserves that financial institutions park with the central bank.

 

But it abandoned its base money target and instead set a "yield curve control" under which it will buy long-term government bonds to keep 10-year bond yields around current levels of zero percent.

 

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