BOJ leaves yield curve policy unchanged

The Bank of Japan (BOJ) made no changes to interest rates and yield curve policy at its two-day policy meeting that ended today. Market expectations that the BOJ would gradually begin to wind down its stimulus program in the face of rising inflationary pressures were in vain. At the end of the two-day meeting, the bank unanimously decided to keep interest at -0.10 percent. The bank also maintained its yield curve control policy, which allows the yield on the 10-year bond to move 50 basis points on either side of the 0 percent target. The BOJ also said in a statement that it will continue large-scale bond purchases and will increase purchases on a flexible basis if needed.