Japan keeps record-low rates, expands yield curve control range

Central bank raises upper limit of its tolerance band on 10-year government bonds to 0.5% from 0.25%, surprising markets

By Tuba Sahin

ANKARA (AA) - Japan's central bank on Tuesday kept its benchmark rate at record lows as expected, but expanded the range for yield fluctuations in the benchmark government bonds, surprising markets.

The Bank of Japan held its key short-term interest rate unchanged at -0.1% and 10-year bond yields at around 0% in its December meeting.

The bank increased the range of 10-year Japanese government bond yield fluctuations to a range of -0.5% and 0.5%, from between -0.25% and 0.25%.

The bank stressed that it will continue widening the monetary base to achieve an annual inflation target of 2%.

According to the latest data, Japan's annual consumer inflation rate rose to 3.7% in October, the highest since January 1991.

Following the move, the Japanese yen gained more than 2% to 133 per dollar, its highest level in four months.

Kaynak:

This news has been read 148 times in total