Markets are testing the Bank of Japan (BOJ), seeking to break its resolve to cap bond yields as soon as its policy decision on Wednesday, as rising inflation challenges the central bank's ultra-easy monetary policy.
A man walks past Bank of Japan's headquarters in Tokyo, Japan, June 17, 2022. REUTERS/Kim Kyung-Hoon/File Photothe Bank of Japan , seeking to break its resolve to cap bond yields as soon as its policy decision on Wednesday, as rising inflation challenges the central bank's ultra-easy monetary policy.
With Governor Haruhiko Kuroda repeating the need to keep policy ultra-loose, the BOJ could opt to stand pat until his successor takes the helm in April.Bond sellers broke the BOJ's 0.5% cap on Friday, less than a month after the policy tweak, forcing emergency buying from the central bank to bring the yield back down.It could make technical tweaks to smooth the yield curve, such as tinkering with its bond-buying or other market operations.
Doing so now would run counter to Kuroda's pledge to keep monetary policy ultra-loose until the recent cost-driven inflation is replaced by prices rising on sustained strong demand. After ditching that negative rate, the BOJ could start paying interest on excess reserves to mop up liquidity from the economy.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Explainer: How does Japan's yield curve control work?The Bank of Japan's yield curve control (YCC) is under fierce market attack, as investors test the bank's commitment to capping bond yields with inflation above the BOJ's target.
Weiterlesen »
Bank of America profits rise; bank warns of slowing economyBank of America says its fourth-quarter profits rose slightly from a year ago, as higher credit costs and potentially bad loans more than offset a sharp rise in interest revenue.
Weiterlesen »
Factbox: Alireza Akbari: the British-Iranian executed by TehranIran has executed British-Iranian national Alireza Akbari, the judiciary's Mizan news agency reported on Saturday, after sentencing the former Iranian deputy defence minister to death on charges of spying for Britain.
Weiterlesen »
Factbox: Deadly aircraft crashes common in mountainous NepalMountainous Nepal, where at least 40 people were killed on Sunday when a plane crashed in the tourist town of Pokhara, has a history of deadly air crashes.
Weiterlesen »
BoJ preparing to purchase more Japanese government bonds on MondayThe Bank of Japan again broke its daily record for Japanese government bond purchases Friday as yields defied its 0.5% cap, in a sign of the rising ma
Weiterlesen »
Asian shares cautious, BOJ faces crunch policy decisionInvestors waited nervously to see if the Bank of Japan will defend its super-sized stimulus policy at a pivotal meeting this week.
Weiterlesen »