BoJ Governor Haruhiko Kuroda told the parliament today that “excessive falls in super-long interest rates would affect returns for insurers and pension funds.” He emphasized, “it’s important to keep the entire yield curve stably low as the pandemic weighs on the economy.”
On recent movements in exchange rate, “in the past, the yen almost always rose in times of market turbulence due to its status as a safe-haven currency,” Kuroda said. “That’s not the case anymore, which is favorable for us.”
Results of BoJ’s policy framework review will be published this Friday. The mostly watched topic include any tweaks on ETF purchases, and the band allowed for 10-year JGB to move around 0%. Otherwise, Kuroda has repeatedly indicated there is no need to change the yield curve control framework as a whole.
