The BOJ said its yields on the 10-year Japanese government bonds would be adjusted from a range of plus and minus 0.25 percent to a range of plus and minus 0.5 percent.
The central bank also said it had opted to maintain its yield target, adding that it will substantially raise the amount of bonds it purchases.
The BOJ said, however, in contrast to European and U.S. central banks, it will continue to set short-term interest rates at minus 0.1 percent and guide 10-year yields to around zero percent as regards its yield curve control program.
Economists here said the BOJ's move was a surprise tweak to its ultra-loose monetary easing policy, rather than an overhaul of its massive stimulus program, but was anticipated to be unrolled next year.
In its statement on the matter, the BOJ said its decision was made to "improve market functioning and encourage a smoother formation of the entire yield curve, while maintaining accommodative financial conditions."
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