BoJ scraps rigid bond yield cap

Central bank further loosens YCC, ends daily bond buys and raises inflation forecasts

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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