Posted 10/31/2023, 10:24:00 AM
BOJ Shifts Policy Stance, Allows Yields to Rise as Inflation Persists
- BOJ abandons its yield curve control policy, allowing 10-year yields to rise above 1% target
- Move signals further normalization of global monetary policy as inflation persists
- Yen falls and Japanese stocks gain on relief that policy shift wasn't more drastic
- BOJ raises its inflation forecasts for 2023-24 and says it will accommodate yield rises
- Shift likely to reverberate globally as another major central bank steps back from ultra-easy policy