The Wall Street Journal: Bank of Japan keeps rates steady, tweaks policy framework

TOKYO — Japan’s central bank took an unexpected step Wednesday, launching a 10-year interest rate target to step up its fight against deflation, following an internal review of existing measures that failed to achieve 2% inflation in a promised two-year time frame.

The Bank of Japan said it would start targeting 10-year interest rates, committing to keep them around zero as part of a new policy framework aimed at stoking inflation.

The BOJ also said it would continue quantitative easing until inflation “exceeds” 2%, effectively strengthening its commitment to continue aggressive easing.

At the latest policy meeting, the BOJ left its deposit rate unchanged at minus 0.1%.

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