Central Banks
IMF Says BOJ Yield Move Is Sensible, Urges Clearer Communication
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The International Monetary Fund said the Bank of Japan’s surprise decision to double the cap on benchmark bond yields is a sensible step, while calling on policymakers to clearly communicate adjustments.
The BOJ shocked global markets Tuesday, saying it will allow 10-year yields to rise to around 0.5% from a previous 0.25% cap. The measure may herald the beginning of a pivot by the last devotee to ultra-easy monetary policy.