Technical Analysis

BOJ leaves policy unchanged, as expected (but widens band of YCC)

The outcome of the Bank of Japan December 2022 monetary policy meeting.

Main policy unchanged, as widely expected:

  • to maintain a -0.1% target for short-term rates
  • and a 0% cap for the 10-year bond yield (around 0%)

more to come

The bombshell is the Bank of Japan adds that they will review operation of yield curve control

  • that they will expand the band around its 10 year yield target to 0.5% above and below (from 0.25)
  • will increase bond purchases to JPY 9 tln a month in Q1

Background to this:


Full text: Statement on Monetary Policy

Bank of Japan Governor Kuroda is speaking at his news conference circa 0600 GMT.


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