Japan's central bank offers bond purchases to keep rates low
ABC News
The Bank of Japan has made an offer for unlimited government bond purchases, moving to curb a surge in long-term interest rates
TOKYO -- The Bank of Japan made an offer for unlimited government bond purchases Monday, moving to curb a surge in long-term interest rates in the world's third-largest economy.
Japan’s central bank set the interest rate for purchasing 10-year government bonds at 0.25%. The market rate had risen close to that level recently on speculation the BOJ might begin reeling back its ultra-loose monetary policy in line with other central banks like the U.S. Federal Reserve.
The BOJ offer drew no bids but still had the effect of lowering interest rates. The last time the Bank of Japan made a similar move was in July 2018.
The latest decision highlights the BOJ’s intention to keep interest rates super low since inflation remains well below its target rate of 2%. Japan’s benchmark interest rate has been kept at minus 0.1% for years.
