Tokyo, The Bank of Japan made a further tweak to its yield cap program at its policy-setting meeting on Tuesday, loosening its grip on long-term yields that have been trending upward.
The Policy Board decided to set “the upper bound of 1.0 percent” for 10-year bond yields “as a reference,” three months after deciding to strictly cap them at that threshold amid stickier-than-expected inflation and a weak yen.
The US dollar temporarily rose to the lower 150 yen range from the mid-149 level in Tokyo today, after the Bank of Japan made another adjustment to its maximum yield program at its policy meeting, according to Japan’s News Agency (KYODO).
The decision came as the BOJ upgraded its inflation outlook to 2.8 percent in both fiscal 2023 and 2024, meaning it would remain above the central bank’s target of 2 percent for three straight fiscal years.
Source: Qatar News Agency