In a recent speech, Bank of Japan (BoJ) governor Ueda Kazuo provided an overview of monetary policy and Japan’s economy. He said that in order to patiently continue with monetary easing under the framework of yield curve control, it is necessary to strike a balance between the economic stim...
On top of returning to positive rates, the BOJ also decided to scrap its yield curve control policy, under which the central bank bought large quantities of Japanese government bonds to keep long-term interest rates at around zero percent to maintain accommodative financial conditions. Meanwhile, t...
Last week, bowing to wage pressure and with well above its 2% inflation target, the BOJ decided it was necessary to tweak its policy of yield curve control. While maintaining negative short-term interest rates, the BOJ indicated that it will now tolerate 10-year government bond yields in a ...
For Japan, the jury is still out on this last question. Still, YCC has had one clear benefit. Under the new policy, the BoJ has been able to exert fairly close control over the term structure of interest rates without resorting to large-scale interventions in the JGB market. Investors acc...
TOKYO -- The Bank of Japan (BOJ) on Tuesday decided to end its negative interest rate policy and yield curve control policy, marking a major shift away from the long-running monetary easing that Japan has seen over the past decade to put an end to deflation. ...
(QE), negative interest rates and the yield curve control policy (YCC). The inflation rebound that Japan has experienced over the past two years – initially triggered by supply chain bottlenecks, the rise in global energy and food prices and the devaluation of the yen, but which more ...
In September 2016, the central bank adopted a "yield-curve control" policy which functions to keep long-term interest rates exceedingly low by adjusting the amount of its bond purchases. The BOJ to date has acquired in excess of 40 percent of the Japanese government's outstanding bonds. ...
Just before theBOJ scrapped its yield curve control policyon March 18, the differential was even wider, with the 10-year JGB at 0.796% and the 10-year Treasury yield at 4.304% as of March 16, the last trading day before the BOJ's announcement. ...
A news report by Nikkei about a likely tweak to the Bank of Japan’s yield-curve control was all it took for investors to realize that the world’s last remaining floor on interest rates might be shifting. The BoJ followed through on Friday, by switching to...
Policy changes at the Bank of Japan could potentially reverse capital flows, shift global yields higher, contribute to a stronger yen, and increase the value of Japanese stocks.