BoJ targets inflation overshoot with revamped policy approach
“Yield curve control” could give the central bank more room for manoeuvre on asset purchases
The Bank of Japan is reshaping its monetary operations in a bid to push inflation above target, as it unveiled the conclusions of its long-awaited "comprehensive assessment" today (September 21).
Following its monetary policy meeting, the BoJ introduced what it calls "yield curve control". Rather than aiming for a specific increase in the monetary base it will instead aim to keep 10-year Japanese government bond (JGB) yields at "around zero".
Analysts were quick to note this could permit a
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