Bank of Japan keeps interest rates negative as it sets out flexible yield curve control plans

50bps cap on 10-year government bonds

Cristian Angeloni
clock • 2 min read

The Bank of Japan’s monetary policy committee has unanimously agreed to keep interest rates at -0.1% today (28 July).

The central bank said its inflation target of 2% "has not yet come in sight", so it will continue its monetary easing course, with yield control. Bank of Japan maintains negative interest rate The MPC also unanimously decided to purchase a "necessary amount" of Japanese government bonds (JGB), without setting an upper limit so that 10-year yields will remain at around 0%. On the yield curve control front, eight out of the nine MPC members voted to continue to allow ten-year JGB yields to fluctuate within a range of plus or minus 0.5 percentage points from the target level, while co...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Markets

Square Mile's CIO Mark Harries: Are we in an AI-generated bubble?

Square Mile's CIO Mark Harries: Are we in an AI-generated bubble?

'Only time will tell how the AI revolution reshapes the market'

Mark Harries
clock 17 May 2024 • 4 min read
Market Movers Blog: Palliser Capital calls on Rio Tinto to abandon its London listing

Market Movers Blog: Palliser Capital calls on Rio Tinto to abandon its London listing

Latest news and analysis

Investment Week
clock 25 April 2024 • 1 min read
How big an impact could global elections have on portfolio allocation in 2024?

How big an impact could global elections have on portfolio allocation in 2024?

US, UK and India main focuses

Investment Week
clock 19 February 2024 • 8 min read
Trustpilot