The Bank of Japan kept its interest-rate targets unchanged despite strong pressure from investors on the bank’s new 0.5% cap for the 10-year government bond yield
Some analysts had predicted the BOJ would lift the cap again at its two-day meeting that ended Wednesday or possibly scrap the cap altogether, ending a policy dating back to 2016 that is known as yield curve control.
The yen, which had been trading at around 128.50 to the dollar shortly before the decision, was trading between 130 and 131 to the dollar on Wednesday afternoon in Tokyo. After Wednesday’s decision, the 10-year yield fell to 0.41% in afternoon trading. Still, analysts said the market was likely to test the 0.5% cap again. Michiyoshi Kato, director of fixed-income sales at Mizuho Securities, said that with Mr. Kuroda likely to preside over just one more policy meeting before his term expires in April, the task of adjusting policy might be left to his successor.
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