Bank of Japan could announce major policy shift this week as bond yields top limit again
Publishing timestamp: 2023-01-16 04:53:25
Summary
Japan's central bank is expected to meet this week to discuss its yield curve control policy. Economists expect the Bank of Japan to either scrap the policy or widen its tolerance range for 10-year Japanese government bond yields. The dollar has dropped 14% against the yen in the last three months and the 10-year bond yield has increased from 0.256% to 0.502%. Bank of America Global Research economists expect the Bank of Japan to keep its benchmark rate unchanged, but there is a significant risk that the central bank will announce the end of Yield Curve Control. Morgan Stanley's Japan Chief Economist Takeshi Yamaguchi also acknowledged the possibility of this scenario. HSBC expects the central bank to announce a further widening of the yield curve control tolerance band instead of abolishing the policy altogether. Market strategist Matt Simpson of City Index does not expect the removal of the Bank of Japan's YCC this week, but sees the central bank widening its inflation target from 2% to a range of 2-3%.
Sentiment: NEUTRAL
Tickers: JPY=,
Keywords: japan, usd/jpy, business news, economic events, asia economy, central banking,
Source: https://www.cnbc.com/2023/01/16/bofa-says-bank-of-japan-could-remove-ycc.html