BOJ leaves policy unchanged, as expected (but widens band of YCC)

The outcome of the Bank of Japan December 2022 monetary policy meeting.

Main policy unchanged, as widely expected:

• to maintain a -0.1% target for short-term rates
• and a 0% cap for the 10-year bond yield Yield A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as Read this Term (around 0%)

more to come (see separate post)

The bombshell is the Bank of Japan adds that they will review operation of yield curve Yield Curve A yield curve is a line used to help determine interest rates of interest rates for a specific bond, differentiated by contract lengths. This is useful for contrasting maturity dates, for example 1 month, 1 year, etc.In particular, yield curves help underscore the relationship between interest rates or borrowing costs and the time to maturity.Some of the best examples of this include US Treasury Securities, which are among some of the most observed worldwide by traders. By determining the slope A yield curve is a line used to help determine interest rates of interest rates for a specific bond, differentiated by contract lengths. This is useful for contrasting maturity dates, for example 1 month, 1 year, etc.In particular, yield curves help underscore the relationship between interest rates or borrowing costs and the time to maturity.Some of the best examples of this include US Treasury Securities, which are among some of the most observed worldwide by traders. By determining the slope Read this Term control

• that they will expand the band around its 10 year yield target to 0.5% above and below (from 0.25)
• will increase bond purchases to JPY 9 tln a month in Q1

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Background to this:

• Bank of Japan December monetary policy statement due Tuesday, 20 December 2022 - preview

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Full text: Statement on Monetary Policy

Bank of Japan Governor Kuroda is speaking at his news conference circa 0600 GMT.

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