Bank of Japan meeting —

At its 22 September 2023 meeting, the Bank of Japan held its policy rate at -0.10%. The decision passed 9-0.

Decision

hold — -0.10% to -0.10%

Vote: 9-0

Key passages

The Bank will continue to allow 10-year JGB yields to fluctuate in the range of around plus and minus 0.5 percentage points from the target level, while it will conduct yield curve control with greater flexibility, regarding the upper and lower bounds of the range as references, not as rigid limits, in its market operations.

YCC flexibility effective loosens the cap on yields, signaling tolerance for higher rates.

The Bank will offer to purchase 10-year JGBs at 1.0 percent every business day through fixed-rate purchase operations, unless it is highly likely that no bids will be submitted.

Raises the de facto yield ceiling from 0.5% to 1.0%, allowing yields to rise further.

Meeting documents

Background reading

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