- Will respond to speed and level of long-term rates if they move beyond 0.50%
- There is still a distance to achieving 2% inflation target
As mentioned in my earlier posts, it is now a test of the BOJ's appetite to see how much they can tolerate. But at the balance, any move higher in yields will be a gradual process of them letting go of the shackles. It will take time and will perhaps be data-driven, depending on inflation developments as well.