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BoJ Surprises Market With No Yield Control Policy Tweak

ByBhavik Nair

Jan 18, 2023
BoJ Surprises Market With No Yield Control Policy Tweak

  • The Bank of Japan on Wednesday kept its ultra-low interest rates unchanged while maintaining its 0.5% cap for the 10-year bond yield, reported Reuters.
  • The central bank defied market expectations it would phase out its massive stimulus program in the backdrop of rising inflationary pressure.
  • The Japanese stock market surged post the BOJ’s decision with the Nikkei index rising over 2% after the midday break.
  • Yields on 10-year Japanese government bonds declined to 0.395%, while yields on long-term bonds rose.
  • Saisuke Sakai, senior economist at Mizuho Research And Technologies said, “If I were [Governor Haruhiko] Kuroda, I would have changed YCC – or scrap it altogether – this time, so that I could have a serene March policy meeting, the last rate review for Kuroda,” according to the report.

Image and article originally from www.benzinga.com. Read the original article here.