Japan's central bank retains key interest rate while fine-tuning bond purchases for more flexibility

Japan's central bank has opted to keep its benchmark interest rate at minus 0.1% but will fine-tune its bond purchases to allow greater flexibility. The Bank of Japan said that extremely high uncertainties for the economy and prices required a more nimble approach than its previous policy. It said it would offer to buy 10-year Japanese government bonds at 1% each business day, instead of the upper limit of 0.5% that was imposed under its “yield curve control program.” It said the aim is still to keep long-term interest rates near zero percent. After Friday's announcement, shares in Tokyo fell and the Japanese yen weakened against the U.S. dollar.