BoJ stands its ground on benchmark yield as global rate pressure builds

FILE PHOTO: A man wearing a protective mask walks past the headquarters of Bank of Japan amid the coronavirus disease (COVID19) outbreak in Tokyo

TOKYO: Japan’s central bank stepped up efforts to stop a key bond yield rising across a red line yesterday, offering to buy more government debt, including through ad-hoc purchases, to keep interest rates low against a pull higher from global yields.

The Bank of Japan’s (BoJ) intervention comes as it seeks to keep monetary policy ultra-loose, even at the cost of fuelling further yen falls, which could push up import costs and hurt the economy.