The International Monetary Fund weighed in on the Bank of Japan raising its cap on 10-year Japanese Government Bond (JGB) yields from 0.25% to 0.5% announced Tuesday.
IMF mission chief to Japan:
- “With uncertainty around the inflation outlook, the Bank of Japan’s adjustment of yield curve control settings is a sensible step including given concerns about bond market functioning”
- “Providing clearer communications on the conditions for adjusting the monetary policy framework would help anchor market expectations and strengthen the credibility of the Bank of Japan’s commitment to achieving its inflation target”
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The announcement and fallout ICYMI:
Follow through for the yen in Europe and America times:
- ForexLive European FX news wrap: Yen flying high after BOJ policy tweak
- Forexlive Americas FX news wrap: Yen hits new highs as the BOJ fallout continues
More:
- BOJ YCC pivot shock: "USD/JPY could be into the 120’s sooner than we expected" says MUFG
- BOJ YCC shock pivot - "risks remain skewed to the downside for USD/JPY"
- More on the Bank of Japan’s next move could be removing the negative interest rate
And, I've just been reminded of this by an eagle-eyed trader - from the IMF only 2 months ago:
