(Reuters) - Bank of Japan Deputy Governor Hiroshi Nakaso said the central bank would make adjustments to the shape of the yield curve as necessary, taking into account developments in the economy, prices and financial conditions.
Japan’s yield curve over the past year has been formed smoothly in line with the BOJ’s market operations guidelines, Nakaso said in a speech on Wednesday in New York. He added that it was “quite possible” to continue to facilitate the formation of a yield curve seen most appropriate for hitting its 2 percent price goal.
The text of the speech was issued on the BOJ’s website.
With inflation subdued, the BOJ revamped its policy framework last year by targeting interest rates instead of the pace of money printing, which is seen more suited for a long-term battle to boost price growth.
The BOJ has maintained its short-term interest rate target of minus 0.1 percent and its 10-year government bond yield target of around zero percent under the yield curve control.
Reporting by Tetsushi Kajimoto in Tokyo; Editing by Chang-Ran Kim