IMF proposes for BOJ to allow bond yields to move more flexibly

• Inflation risks are becoming more pronounced
• If significant risks materialise, BOJ must be ready to withdraw stimulus more strongly - such as raising short-term rates
• Policy proposal calls for BOJ to allow bond yields to move more flexibly, following annual consultation with Japan
• Possible options include widening yield band, raising yield target, targeting shorter-term yields

The pressure is continuing to stay on the Japanese central bank here despite their policy decision last week. It seems like the chorus that is asking for change is getting louder and markets are also listening. 10-year JGB yields are back up to 0.49% today, just a whisker away from touching the BOJ BOJ The Bank of Japan (BOJ) is the central bank of Japan. It was established in 1882 and is headquartered in Tokyo.The BOJ's main responsibilities include issuing and managing the country's currency, implementing monetary policy, and ensuring the stability of the financial system. It also acts as a lender of last resort to banks during times of financial crisis. The BOJ sets the interest rate of the country and sets an inflation target, aiming to achieve 2% inflation.The BoO has a long history, with The Bank of Japan (BOJ) is the central bank of Japan. It was established in 1882 and is headquartered in Tokyo.The BOJ's main responsibilities include issuing and managing the country's currency, implementing monetary policy, and ensuring the stability of the financial system. It also acts as a lender of last resort to banks during times of financial crisis. The BOJ sets the interest rate of the country and sets an inflation target, aiming to achieve 2% inflation.The BoO has a long history, with Read this Term ceiling of 0.50% again.