Bank of Japan stuns markets with yield control policy change via IrishTimesBiz
In a news conference, however, BoJ governor Haruhiko Kuroda denied that the latest adjustment amounted to a tightening of monetary policy, stressing that the central bank would not scrap its yield target.
Mr Kuroda had earlier said any tweak to the yield curve control would effectively amount to an interest rate increase. But on Tuesday, he said the adjustment was meant to address increased volatility in global financial markets and improve bond market functioning to “enhance the sustainability of monetary easing”.
But Mr Kuroda had long argued that any tightening would be premature without robust wage growth, which is why most economists had expected the BoJ to stay the course until he steps down in April. On Tuesday, the BoJ maintained its outlook that inflation would slow down next year and warned of “extremely high uncertainties” for the economy.
Kyohei Morita, chief Japan economist at Nomura Securities, said the BoJ’s move was probably best seen as a policy tweak rather than a full pivot. “Probably the BoJ wants to contribute to reducing the negative side effects of the yield curve control policy,” he said, noting that the bank’s outsized ownership of the Japanese government bonds market meant that liquidity had evaporated.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Major change in conditions on the way as Met Eireann issues two new warningsWe’ll be swapping out the ice, snow and low temperatures for a few days of heavy rain and windy weather as temperatures begin to rise
Read more »
Bizarre folklore: Unusual Christmas traditions around the worldFrom eating KFC in Japan to roller blading to mass in Venezuela: Unusual Christmas traditions around the world
Read more »
Ireland finish fourth at Nations Cup after Japan defeatSean Dancer’s side twice lost a lead in their third-place playoff in Valencia
Read more »
North Korea warns Japan over new security strategyNorth Korea has denounced Japan's new security strategy, calling it a 'serious' threat against international peace that 'fundamentally changed' the regional security environment and warned of 'actual action' in response.
Read more »
Australian bank Macquarie sets aside €100m to buy Irish homesDocuments seen by the Business Post show that the fund has bought several homes in a housing estate in Carlow in March for €875,000
Read more »