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The Bank of Japan (BOJ) has adopted forward guidance for policy rates to enhance sustainability of its policy framework.

The policymakers intend to keep rates low for an extended period of time, according to BOJ’s forward guidance. Further, it will conduct JGB buying in a flexible manner so outstanding amount will increase at an annual pace of around JPY 80 trillion.

The central bank maintained the short-term interest rate target at minus 0.1 percent and a pledge to guide 10-year government bond yields around zero percent by a 7-2 vote and took measures to make its stimulus program more flexible