Based on this thinking, the BoJ decided to modify the conduct of yield curve control at its last monetary policy meeting. Specifically, while the central bank maintained the target level of 10-year Japanese government bond (JGB) yields at around zero percent, it decided to conduct yield curve ...
The BOJ since September adopted a yield control curve policy which functions to keep long-term interest rates exceedingly low by adjusting the amount of its bond purchases. The policy has come under scrutiny and criticism recently for its durability and sustainability, as yield and debt prices move...
Under yield curve control (YCC), the BOJ sets a short-term interest rate target of -0.1 percent and caps the 10-year bond yield around zero as part of efforts to durably hit its price goal.
The BOJ Gets Serious on Yield-Curve ControlQuentin Webb
"In light of current economic, price and financial developments, it's appropriate to maintain monetary easing, now conducted through yield curve control," Ueda told parliament. The shape of Japan's bond yield curve has normalised due in part to falling global yields, Ueda sa...
But while the central bank's recently introduced yield curve control policy has helped quash rises in Japan's long-term interest rates, Japan-U.S. interest rate differences may further widen looking ahead. The U.S. currency has risen around 10 percent against the yen, after Trump won the ...
b) Conduct of yield curve control (a unanimous vote) The Bank will regard the upper bound of 1.0 percent for 10-year JGB yields as a reference in its market operations, and in order to encourage the formation of a yield curve that is consistent with the above guideline for market opera...
He said the BOJ will continue to promote powerful monetary easing under the yield curve control framework to achieve its price target at the earliest date possible and while the underlying trend of inflation needed to be examined, the overall yield curve will not be changed rashly. ...
"When looking at current economic, price and financial developments, it's appropriate to maintain yield curve control for now," Ueda said. The 71-year-old academic's term began on Sunday, succeeding Haruhiko Kuroda, whose second, five-year term ended on Saturday. Markets have...
In late October, the bank increased the flexibility of its so-called "Yield Curve Control" monetary tool on the long-term rate. The move added flexibility to the 1 percent threshold for 10-year bond yields, rather than regarding it as a rigid cap. ...