BOJ keeps interest rate targets unchanged
Guidance on keeping rates ultralow intact
Board revises up inflation forecast to near 2
BOJ to offer fixedrate unlimited bond buying daily

TOKYO, April 28 Reuters The Bank of Japan on Thursday strengthened its commitment to keep interest rates ultralow by vowing to buy unlimited amounts of bonds daily to defend its yield target, triggering a fresh selloff in the yen and sending government bonds rallying.

Reinforcing its resolve to support a fragile economy even as sharp rises in raw material costs push up inflation, the BOJ maintained its ultraloose monetary policy and a pledge to keep interest rates at present or lower levels.

It also said it would buy unlimited amounts of 10year government bonds to defend an implicit 0.25 cap around its zero yield target every market day, instead of on an adhoc basis.

The BOJ39;s commitment to its zerorate programme puts it at odds with other major economies that are shifting toward tighter monetary policy to combat surging prices, although inflation in Japan is expected to creep up towards the central bank39;s 2 target.

The key announcement is the commitment to conducting fixedrate operations every day, said Bart Wakabayashi, cobranch manager at State Street Bank in Tokyo.

I think they are trying to make the point here that we39;re ready to act at any second. They39;ve quadrupled down on their commitment to this.

The BOJ39;s strengthened commitment to keep policy accommodative…