Alert! This is a ‘Hint’ for BOJ Policy Meetings - Kakiforex.com - Financial Market Media No. 1 in the World Alert! This is a ‘Hint’ for BOJ Policy Meetings Alert! This is a ‘Hint’ for BOJ Policy Meetings
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March 18, 2021

Alert! This is a ‘Hint’ for BOJ Policy Meetings

 The Bank of Japan (BOJ) is ready to make monetary policy adjustments designed to increase flexibility and simplify the functioning of financial institutions, Japanese media, the Nikkei, reported.


Ahead of the BOJ policy meeting on Friday, the central bank is said to allow its bond yield target to move in a slightly larger range around +/- 0.25%, compared to the current +/- 0.2%.


This is aimed at maintaining low interest rates while encouraging the market to function normally by providing opportunities for financial institutions to increase income.



The BOJ will also remove its target to buy exchange -traded funds (ETFs), worth ¥ 6 trillion a year, and instead promise to make such purchases only in the event of turmoil in the market.


Meanwhile, at its December meeting, the BOJ said that it would conduct a policy review. The conclusions are expected to be revealed after the end of the meeting on Friday.


Following the news, Japan’s 10 -year government bond yield rose to 0.115%, which has pushed the yen higher against the US dollar. Meanwhile, shares of Japanese banks also soared.