Bank of Japan Governor Kazuo Ueda said Tuesday he does not expect long-term yields to rise sharply above 1 percent even after the central bank decided at a policy meeting earlier in the day to make the level a loose target.
Speaking at a post-meeting press conference, Ueda said the policy tweak is a "preemptive" step against future risks, including volatility in foreign exchange and other financial markets.
The BOJ decided to allow 10-year Japanese government bond yields to rise above 1.0 percent, while retaining its overall framework of keeping borrowing costs low.
Ueda said the BOJ cannot expect to achieve for sure its 2 percent inflation goal, and that it will persist with monetary easing amid extremely high uncertainty over the economic and price outlook.
