Controlling short- and long-term interest rates -- so-called yield curve control -- facilitates the formation of the term structure of interest rates that is most appropriate for achieving the price stability target.
Specifically, the Bank applies a negative interest rate of minus 0.1 percent to a portion of current account balances held at the Bank by financial institutions, and purchases JGBs so that 10-year JGB yields will remain at around zero percent (Chart 8).