Bank of Japan meeting —

At its 19 December 2023 meeting, the Bank of Japan held its policy rate at -0.10%.

Decision

hold — -0.10% to -0.10%

Key passages

The short-term policy interest rate: The Bank will apply a negative interest rate of minus 0.1 percent to the Policy-Rate Balances in current accounts held by financial institutions at the Bank. The long-term interest rate: The Bank will purchase a necessary amount of Japanese government bonds (JGBs) without setting an upper limit so that 10-year JGB yields will remain at around zero percent.

No change to key rates; confirms continuation of negative rate and YCC framework.

The Bank will regard the upper bound of 1.0 percent for 10-year JGB yields as a reference in its market operations

Softens the previously rigid 1% cap to a reference, allowing yields to rise more freely.

Meeting documents

Background reading

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