Not Expecting Long-Term Rates to Rise to 1 Pct: BOJ Gov. Ueda

Tokyo, July 28 (Jiji Press)--Bank of Japan Governor Kazuo Ueda said Friday that he does not expect Japanese long-term interest rates to rise to 1 pct. The central bank at its two-day policy-setting meeting that ended earlier in the day decided to operate its yield curve control, a key component of its current monetary easing policy, with greater flexibility, allowing 10-year Japanese government bond yields to rise above 0.5 pct to a certain extent. The BOJ also said that it will offer to buy 10-year JGBs at a fixed yield of 1.0 pct in money market operations every business day in principle, up from the previous yield of 0.5 pct. At a press conference after the Policy Board meeting, Ueda said he does not think that it is appropriate for long-term rates to rise to 1 pct. The yield on the most recent 10-year JGB issue is regarded as Japan's benchmark long-term interest rate. The flexible operation of the yield curve control will enable the BOJ to respond to both upside and downside risks in a timely manner and help enhance the sustainability of the easing policy, he said. END