BOJ surprises with monetary policy tweak

In a surprise move, Japan's central bank has adjusted its monetary policy. The Bank of Japan decided to expand the yield on 10-year government bonds, saying the previous range could hurt market functions. The yield will now move in a range of around plus and minus 0.5 percent. The earlier range was plus and minus 0.25 percent.

Policymakers wrapped up their two-day meeting on Tuesday.

Their decision came amid pressure for Japan to raise interest rates, as other major central banks push up their rates.

The BOJ said it had decided the previous yield range was too narrow, and market functions could suffer.

Board members also maintained the short-term interest rate in negative territory.

The BOJ will also increase monthly purchases of government bonds to hold long-term rates around zero percent.

Source: https://www3.nhk.or.jp/nhkworld/en/news/20221220_22/