- Analytics
- News and Tools
- Market News
- BOJ may tolerate falls in yield to head off yen spike - ex-BOJ member
BOJ may tolerate falls in yield to head off yen spike - ex-BOJ member
The Bank of Japan may seek to prevent unwelcome yen rises by tolerating temporary, market-driven falls in long-term interest rates, former BOJ board member Sayuri Shirai said.
Japanese government bond (JGB) yields hit three-year lows on Friday on concerns about the U.S.-China trade war, even as the BOJ cut its purchase of long-dated bonds to prevent 10-year yields from deviating too much from its 0% target.
"The BOJ will probably maintain its current framework and the target range, but tolerate market-driven falls in yields," Shirai said.
"That way, it can head off excessive rises in the yen, without hurting financial institutions," she told .
If yen rises become too sharp, the BOJ may be forced to widen the range at which it allows yields to move, said Shirai.
"The BOJ probably wants to avoid expanding stimulus for as long as possible," Shirai said. "It has already done so much and there's few policy tools left at its disposal."
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
