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Japan’s central bank retains key interest rate while fine-tuning bond purchases for more flexibility

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TOKYO (AP) — Japan’s central bank has opted to keep its benchmark interest rate at minus 0.1% but has fine-tuned its bond purchases to allow greater flexibility in its policies. The Bank of Japan said that uncertainties for the economy and prices required a nimbler approach in policies aimed at keeping long-term interest rates near zero percent. It said it would offer to buy 10-year Japanese government bonds at 1% each business day, instead of the upper limit of 0.5% that was imposed under its “yield curve control program.” Markets wobbled after Friday’s announcement and the yield on the 10-year U.S. Treasury spiked and then fell back. The Japanese yen’s rate against the U.S. dollar was little changed.

Article Topic Follows: AP National

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