Ranil Salgado, the IMF’s mission chief to Japan, said that “with uncertainty around the inflation outlook, the Bank of Japan’s adjustment of yield curve control settings is a sensible step including given concerns about bond market functioning.”
“Providing clearer communications on the conditions for adjusting the monetary policy framework would help anchor market expectations and strengthen the credibility of the Bank of Japan’s commitment to achieve its inflation target,” he said.
BoJ announced to raise the cap on 10-year JGB yield from 0.25% to 0.50% yesterday, to ” correct distortions in the yield curve”.
