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...

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