TOKYO (Reuters) – Bank of Japan on Friday expanded its holdings allowing long-term interest rates to move around their 0% target and pledged to buy risky assets only when needed, instead of fixed annual distance.
In a review of its policy instruments announced Friday, the BOJ said it would allow long-term rates to move up and down 0.25% around its target, instead of 0.2%.
The BOJ also said it would buy trading securities (ETFs) and real estate securities funds (REITs) when needed, while retaining the 12-trillion-yen and 180-billion-yen peaks for the purchase. , separately.
As would be widely expected, the BOJ kept cash positions unchanged, including a commitment to manage short-term interest rates at -0.1% and a 10-year bond yield of around 0%.
The BOJ in December unveiled a plan to conduct the study in March to find ways to make its policy more “sustainable and efficient” as COVID-19 pandemics hurt the economy and extending the battle to the unachievable 2% inflation target.
Reciting with Leika Kihara, Tetsushi Kajimoto, Kaori Kaneko and Daniel Leussink; Edited by Chang-Ran Kim