Bank of Japan members saw no need for new yield control tweaks, September minutes show

TOKYO, Nov 6 (Reuters) – A majority of Bank of Japan board members say there is no need for further adjustments to yield curve control and will continue monetary easing to meet inflation and wage growth targets. The agreement was revealed in the minutes of the September meeting on Monday.

The comments were made before the Bank of Japan held its October meeting last week, as it further eased its grip on long-term interest rates by tweaking bond yield controls and scrapping controversial monetary stimulus. We have taken another small step towards this.

At its September 21-22 meeting, the Bank of Japan held firm on its monetary easing settings and commitment to supporting the economy until inflation sustainably reaches its 2% target, and announced plans to phase out large-scale economic stimulus. Suggested that there is no hurry.

According to the minutes of the September meeting, board members recognized that long-term interest rates were moving in line with market adjustment policy, following the central bank’s decision in July to make yield adjustment more flexible. It was agreed.

“At the time, long-term U.S. interest rates had not yet risen sharply, and the minutes of the meeting suggested that the policies adopted by the Bank of Japan last week were not expected until recently,” said Naomi Muguruma, chief fixed income strategist at Mitsubishi UFJ Morgan Stanley Securities. “I am doing so,” he said.

Muguruma added that at the September meeting, central bank board members remained cautious about adjusting policy, but the BOJ had become more positive in its view of price rises.

Several members said that the abolition of negative interest rates and yield restraint policies needed to be discussed in conjunction with achieving the Bank of Japan’s 2% inflation target.

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