Japan’s central bank tweaked its longstanding monetary easing programme on Tuesday, in a surprise move that saw the yen strengthen quickly against the dollar and prompted falls on Tokyo bourses.
The bank says it would widen the band in which it would allow rates for 10-year Japan government bonds to move, saying it would improve market functioning.
The Bank will expand the range of 10-year JGB yield fluctuations from the target level: from between around plus and minus 0.25 percentage points to between around plus and minus 0.5 percentage points.
The bank left the rest of its longstanding loose monetary programme intact, including its years-old inflation target of two percent.