Bank of Japan
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Balancing Act: Bank of Japan’s Slow Dance with Yield Curve Control Policy
Central banks around the world made quite a splash last week, with the Federal Reserve and the European Central Bank meeting expectations with a 25-basis point policy rate hike. Yet, the real surprise came from the East with the Bank of Japan (BOJ) presenting an unexpected shift in the Yield Curve Control (YCC) policy. This unexpected move from the BOJ marks a commencement of their withdrawal from the YCC, as they now permit a deviation above the long-term rate cap of 0.5%, and have upped the rate for the 10-year…
