TOKYO, July 28 (Xinhua) -- The Bank of Japan (BOJ) on Friday decided to operate its yield curve control with greater flexibility, allowing 10-year Japanese government bond yields to rise above 0.5 percent to some extent.

Policymakers at the BOJ wrapped up their two-day meeting on Friday, agreeing that the central bank will continue to allow yields of 10-year Japanese government bonds to fluctuate in a range of around plus and minus 0.5 percentage points from the target level, while it will conduct yield curve control with greater flexibility.

The upper and lower bounds of the range will be regarded as references, instead of rigid limits, the BOJ said in a statement.

Japan's central bank governor Kazuo Ueda told a post-meeting press conference that the BOJ's decision to allow 10-year government bond yields to rise above its 0.5 percent cap is to prepare for the upside risks in the country.

Ueda reiterated that there is "some distance" to its 2 percent inflation target, and therefore, monetary easing is needed. Enditem

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