The Bank of Japan (BOJ) has loosened its Yield Curve control, allowing 10-year Japanese government bond yields to fluctuate within a range of plus or minus 0.5 percentage points from its 0% target. The BOJ will also offer to purchase 10-year JGBs at 1% through fixed-rate operations, effectively expanding its tolerance by 50 basis points. The central bank pledged to conduct yield curve control with greater flexibility and kept its ultra-loose interest rate intact at -0.1%. The BOJ raised its median forecast for inflation to 2.5% for fiscal 2023.
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