As results of the September meeting and the large-scale review of the monetary policy, The Bank of Japan decided to abandon the monetary base reference point as one of the main targets. Instead, the regulator will begin to target the yield on 10-year government bonds at the current level of about 0%. Japan's stock market responded positively to the review of the monetary policy. The Nikkei 225 stock index during trading on Tuesday rose by 1.2%. Rate of the yen declines in all major currency pairs. In particular the yen fell 0.7% against the US dollar, 0.9% against the euro and the pound sterling.

Bank of Japan at the same time kept the old landmark of increasing the monetary base: the regulator will continue to buy Japanese government bonds by 80 trillion yen ($ 776 billion) annually.

Purchase of government bonds will continue to as long as inflation is accelerated to stable 2% annually. The Bank of Japan intends to achieve the acceleration of inflation "as soon as possible," according to a statement the regulator.

As a result of the Bank of Japan meeting on September 20-21, rate for deposits is also left without changes, maintaining it at minus 0.1% per annum.

Excessive reduction in the yield of government bonds or smoothing of the yield curve may have a negative impact on the economy, worsening confidence in it, says the Central Bank leaders.

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