TOKYO – Bank of Japan Governor Haruhiko Kuroda said on Wednesday that the central bank would closely monitor moves in the government bond market and respond with flexibility in its purchases of government debt and in its market operations.
Kuroda said that he did not expect JGB yields to spike and that a recent increase in JGB yields was not having a major impact on Japan's economy.
Kuroda reiterated the central bank's commitment to buying about 50 trillion yen ($490 billion) in JGBs a year to achieve 2 percent inflation within two years.
Earlier on Wednesday, the BOJ maintained its pledge to increase base money, or cash and deposits at the central bank, at an annual pace of 60 trillion to 70 trillion yen by a unanimous vote.
($1 = 102.5450 Japanese yen)
(Reporting by Stanley White; Editing by Edmund Klamann & Kim Coghill)