BOJ chief signals readiness to increase bond buying if yield jumps
The Bank of Japan is prepared to adjust its monetary policy to counter a sharp rise in long-term interest rates, Governor Kazuo Ueda said recently. Market forces are expected to set yield levels, and the BOJ will only intervene when market conditions become abnormal. Yield fluctuations may reflect changing economic views on Japan's outlook, but the BOJ will remain vigilant to stabilize markets.
- The Bank of Japan's willingness to respond quickly to changes in yields could be seen as a signal that the central bank is open to revising its inflation target or adjusting its monetary policy further.
- How might the potential for higher interest rates and tighter monetary policy impact the long-term sustainability of Japan's economic growth, particularly in light of an aging population and low productivity growth?