Japan’s central bank offers bond purchases to keep rates low

By YURI KAGEYAMA
AP Business Writer

TOKYO (AP) — The Bank of Japan has made an offer for unlimited government bond purchases, moving to curb a surge in long-term interest rates. Japan’s central bank set the interest rate for purchasing 10-year government bonds at 0.25%. The rate had risen close to that level on speculation the BOJ might begin reeling back its ultra-loose monetary policy in line with other central banks like the Federal Reserve. The BOJ offer drew no bids but still had the effect of lowering interest rates. The latest decision highlights the BOJ’s intention to keep interest rates super low since inflation remains well below its target rate of 2%. Japan’s benchmark interest rate has been kept at minus 0.1% for years.