The surprise decision sent the yen skidding against other currencies and bond yields tumbling the most in decades, as investors unwound bets they made anticipating the central bank would overhaul its yield control policy.to prevent long-term rates from rising too much - a move some analysts took as a sign Governor Haruhiko Kuroda will hold off making big policy shifts during the remaining months of his term, which ends in April.
"Uncertainty regarding Japan's economy is very high. It's necessary to support the economy with our stimulus policy, to ensure companies can raise wages," Kuroda said. "By showing its resolve to use market tools more flexibly, the BOJ wanted to signal to markets it won't make big monetary policy changes under Kuroda.", ending a decade helming the bank that brought about radical monetary stimulus but ultimately failed to meet its objective of sustainably reviving anemic consumer demand.to double the yield band, a tweak analysts say has failed to correct market distortions caused by its heavy bond buying.
Market attention is already shifting toward monetary policy under Kuroda's successor, who will need to steer an orderly exit from decades of ultra-low rates. It also revised up the inflation forecast for the fiscal year ending March 2025 to 1.8% from 1.6% previously.
Looks like the Bank of Japan is holdin' on to them ultra-low interest rates tighter than a broke man holdin' on to a dollar bill. Inflation pressure ain't nothin' but a thang, ain't no stopping the stimulus train.' BOJ stimulus interestrates
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