CORRECTED: URGENT: BOJ stands pat on ultralow rate policy

The Bank of Japan on Wednesday made no change to its ultralow rate policy, defying pressure to do so after the central bank earlier surprised markets by allowing key long-term government bond yields to move in a wider range.

At the end of a two-day policy meeting, the BOJ stuck to its yield curve control program designed to keep both short-term and long-term interest rates at rock-bottom levels.

The 0.5 percent cap on the yield of 10-year Japanese government bonds was retained, after the BOJ's decision to raise it from 0.25 percent sparked bond-buying by market players testing the bank's resolve and challenging the new target.

In a fresh outlook report, the BOJ upgraded its inflation forecasts for the current fiscal year ending March and fiscal 2024 as inflationary pressures continue to build.

© Kyodo News