TOKYO—Japan is taking action to keep interest rates ultra low and stimulate its economy, bucking the global trend symbolized by the Federal Reserve’s plans for multiple rate increases.
The
on Thursday warned investors that it wouldn’t let the yield on the 10-year Japanese government bond rise above 0.25% after the market pushed the rate near that level for the first time in six years.
With Japan starting a three-day weekend Friday, the central bank said it would buy an unlimited amount of recently issued 10-year Japanese government bonds at a fixed rate of 0.25% on Monday. Bond prices move in the opposite direction to yields, so the BOJ was telling any investors inclined to dump their bonds quickly at a low price that they could get a better deal Monday.
The BOJ’s message…
