BoJ scraps rigid bond yield cap

Bank of Japan
Bank of Japan

The Bank of Japan (BoJ) further loosened its control on long-term interest rates by tweaking its yield curve control (YCC) policy today (October 31), while keeping the short-term policy rate unchanged at -0.1%.

In an 8–1 vote, the board decided to use 1% as a new reference point for yields on the 10-year Japanese government bond (JGB), but “without setting an upper limit”. In July the central bank had set the reference point for the 10-year bond yield at 0.5%, with a hard cap at 1%.

In its

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