The Bank of Japan maintained ultra-low interest rates on Friday but took steps to make its yield curve control policy more flexible, underscoring a growing concern over the rising side-effects of prolonged monetary easing.
At the two-day meeting that ended on Friday, the central bank kept unchanged its short-term interest rate target at -0.1 per cent and that for the 10-year government bond yield around 0 per cent. It also maintained guidance allowing the 10-year yield to move 0.5 per cent up and down each around the 0 per cent target, while saying those would be"references" rather than"rigid limits".The dollar reversed declines against the yen to surge as much as 1.22 per cent. Japan's Nikkei share average pared the morning session's decline to last be down 0.38 per cent. The benchmark 10-year Japanese government bond yield remained at 0.
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