The Bank of Japan decided to bring more flexibility to its yield curve control policy as strictly capping the long-term yields entail large side effects and the central bank retained its negative interest rate. The BoJ policy board, led by Governor Kazuo Ueda, decided to regard the upper bound of 1.0 percent for 10-year JGB yields as a 'reference' in its market operations.
The bank dropped the wording that the 10-year JGB yields will fluctuate between plus and minus 0.5 percentage points from the target level.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.