2023-11-01 04:04:32
The Bank of Japan announced on the 1st that it would carry out temporary government bond purchases. With long-term interest rates approaching the 1% target set by the Bank of Japan, the central bank has shown its stance to curb rapid interest rate increases. This is the first implementation since the Bank of Japan decided to re-revise its yield curve control (long-term and short-term interest rate control, YCC).
In its followingnoon monetary operations, the Bank of Japan announced extraordinary operations for bonds with remaining maturities of more than three years and less than five years, and those with remaining maturities of more than five years and less than 10 years. The purchase amounts are 100 billion yen and 300 billion yen, respectively.
At the Monetary Policy Meeting on October 31st, the Bank of Japan announced that while the long-term interest rate guidance target under the YCC policy will continue to be around 0%, it will aim for an upper limit of 1%, and will take flexible measures to allow transactions exceeding 1%. Decided.
Regarding interest rate increases, Governor Kazuo Ueda said at a regular press conference following the meeting that speculative movements will be “curtailed through flexible operations” and that long-term interest rates are “not expected to significantly exceed 1%.”
As long-term interest rates in the United States rise, domestic long-term interest rates also temporarily hit 0.955% on the 31st, the highest level since May 2013. On the 1st, it rose to 0.97% at one point.
Related article
(Updates daily long-term interest rate figures)
1698818739
#Bank #Japan #announces #extraordinary #government #bond #purchases #pushing #longterm #interest #rates #closer #ceiling #Bloomberg