BOJ changes yield curve control, jolts markets with surprise monetary policy | CNN Business

  • 📰 cnni
  • ⏱ Reading Time:
  • 26 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 14%
  • Publisher: 59%

United States News News

United States United States Latest News,United States United States Headlines

The Bank of Japan shocked markets with a surprise tweak to its bond yield controls that allows long-term interest rates to rise more

Shares tanked, while the yen and bond yields spiked following the decision, which caught offguard investors who had expected the BOJ to make no changes to its yield curve control until Governor Haruhiko Kuroda steps down in April. In a move explained as aimed at breathing life back into a dormant bond market, the BOJ decided to allow the 10-year bond yield to move 50 basis points either side of its 0% target, wider than the previous 25 basis point band.

“Through these steps, the BOJ will aim to achieve its price target by enhancing the sustainability of monetary easing under this framework,” the BOJ said in a statement, signaling that the move was aimed at prolonging YCC rather than phasing it out. Widening the band The benchmark Nikkei 225 slumped 2.5% after the decision, while the dollar fell 2.7% to a four-month low of 133.11 yen. The 10-year Japanese government bond yield briefly spiked to 0.460%, close to the BOJ’s newly set implicit cap.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

KemenkeuRI

smindrawatii mgkn solusi lain

mohmahfudmd solusi dri negeri tirai bambu

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 326. in US

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Asian Stock Market: Bears cheer Bank of Japan moves to trace Wall Street's lossesEquities in the Asia-Pacific region copy Wall Street’s move, despite an upbeat start, as the Bank of Japan (BOJ) inflicted losses in the stocks and bo
Source: FXStreetNews - 🏆 14. / 72 Read more »