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Economy

BOJ drops 6tn yen target for exchange traded fund purchases

Central bank boosts flexibility on rates in first policy review since 2016

The Bank of Japan's policy changes are designed to make its extreme easing more sustainable for the long term.     © Reuters

TOKYO -- The Bank of Japan added more flexibility to its interest rate target and asset purchase program on Friday while reiterating its commitment to accommodative monetary policy, as the central bank tries to keep the country's recovery on track from the coronavirus pandemic.

The BOJ, conducting its first comprehensive review of monetary policy framework since September 2016, took steps to remedy the side effects of its extreme monetary easing, such as market distortions and pressure on bank revenues. The changes are aimed at making the easing policy more sustainable for the long term.

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