BOJ Adjusts Yield Control Policy, Expands Flexibility
The Bank of Japan (BOJ) has made adjustments to its bond yield control policy, signaling a gradual move towards ending its massive stimulus program. While maintaining its short-term interest rate target of -0.1% and the 10-year government bond yield target of around 0%, the BOJ redefined 1.0% as a loose "upper bound" rather than a rigid cap and removed a pledge to defend the level with unlimited bond purchases. The decision reflects the challenges faced by the BOJ in maintaining its bond yield control amid rising global bond yields and persistent inflation. The BOJ also revised up its inflation forecasts, indicating a growing conviction that conditions for phasing out ultra-loose monetary policy are falling into place.
- BOJ modifies bond yield control, re-defines long-term rate cap Reuters
- Bank of Japan Makes Modest Tweak to Yield Policy Bloomberg Television
- Bank of Japan increases flexibility on yield curve control, keeps rates unchanged CNBC
- BOJ Policy: It's Time to Accelerate Japan's YCC Exit Bloomberg
- Morning Bid: All eyes on Bank of Japan's 1% yield cap Reuters
Reading Insights
0
12
2 min
vs 3 min read
75%
462 → 116 words
Want the full story? Read the original article
Read on Reuters