Bank of Japan Faces Pressure to Adjust Yield Curve Control Policy Amid Rising Rates

Rising global interest rates are increasing pressure on the Bank of Japan to change its yield curve control policy at its Oct 30-31 meeting.

Sources say there is no consensus within the BOJ yet on whether an immediate change is needed. Ideas like raising the 10-year yield cap above 1% are being discussed.

Some at the BOJ oppose steps that would signal an exit from ultra-loose policy due to economic uncertainty.

Analysts say the BOJ may need to tweak yield curve control again depending on market moves ahead of the meeting.

BOJ Governor Ueda has pledged to maintain ultra-loose policy until consumption and wage growth pick up. Most analysts see YCC ending by end of 2024.