Reuters reports that the Bank of Japan widened the band at which it allows long-term interest rates to move around its target, as part of a raft of measures to make its ultra-easy policy more sustainable amid a prolonged battle to fire up inflation.

The central bank also removed its explicit guidance to buy exchange-traded funds (ETF) at an annual pace of roughly 6 trillion yen ($55 billion), which gives it more room to wind back its market stimulus.

Instead of buying at a set pace, the BOJ said it would buy ETFs only when necessary while maintaining a 12-trillion-yen ceiling for annual purchases.

As widely expected, the BOJ kept intact its target of -0.1% for short-term rates and 0% for the 10-year bond yield under its yield curve control (YCC) policy.

In a review of its policy tools announced on Friday, the BOJ said it would allow long-term rates to move up and down by 0.25% around its target, instead of by 0.2%.

The BOJ will not apply the rule rigidly when yields move below the band temporarily, it said, stressing the near-term priority was to keep borrowing costs stably low to support an economy hit by the COVID-19 pandemic.