2023-07-28 01:23:24 ET
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The Bank of Japan kept its key short-term interest rate unchanged at -0.1% and that of 10-year bond yields at around 0% in its July meeting by unanimous vote.
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The BOJ said it will still allow yields to fluctuate in the range of around plus and minus 0.5%, but it will "conduct yield curve control with greater flexibility, regarding the upper and lower bounds the range as references, not as rigid limits, in its market operations."
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Japan’s central bank said that it will continue to allow 10-year government bond yields to fluctuate in the range of around plus and minus 0.5%.
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On Friday, the BOJ also downgraded its inflation median forecast for 2024 to 1.9% from 2% previously, while retaining its 2025 forecast for 1.6%.
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The Japanese yen ( JPY:USD ) fluctuated broadly around the 140 per dollar level, falling as much as 0.5% after the decision.
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More on Japan's economy:
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Japan factory activity shrinks in July constrained by weak demand
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Japan's core inflation rate accelerates in June but stays above BOJ's target
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Japan logs its first trade surplus in almost two years in June
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Japan Services PMI revised downward to 54.0 in June, but stays in expansion territory
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Bank of Japan leaves key interest rate unchanged, pledges to make YCC more flexible