The BoJ's recent policy will now allow 10-year Japanese government bond (JGB) yields to fluctuate around the 0% target level within a range of approximately plus and minus 0.5 percentage points. Shift-Away from Deflation The recent stock rally was fueled by rising inflation and interest rates, as well as a resurgence in local consumer demand. The Nikkei 225 Index retreated from 11-week highs on Sep 18, 2023 as investors turned cautious ahead of key central bank events this week.