BOJ’s Kuroda: Now is time to keep yield curve stably low as COVID-19 still affecting economy
|Commenting on the Bank of Japan’s (BOJ) yield curve control framework, the central bank’s chief Haruhiko Kuroda said that “now is time to keep yield curve stably low as COVID-19 still continues to affect the economy.”
Key quotes
Japan's inflation rate is slightly positive when stripping away temporary factors such as effect of crude oil price falls, govt travel discounts.
FX rates moves on various factors such as economy, interest rate differentials.
Having joined discussions at G20, believe global consensus is to avoid premature withdrawal of fiscal support.
Rises in the US treasury yields reflect hopes of economic recovery, don't think it will cause big problems ahead.
Don't think it's necessary, appropriate to widen band around BOJ’s long-term rate target.
BOJ must buy ETFs flexibly when its presence is needed to address sharp widening of risk premia.
Related reads
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.