Central Banks
BOJ Could End Yield Curve Control in April, Ex-Official Says
- Drop in global bond yields has created favorable conditions
- Momma doesn’t rule out possibility BOJ’s Ueda will keep YCC
This article is for subscribers only.
A recent drop in global bond yields has created favorable conditions for the Bank of Japan to scrap its yield curve control program this month, according to a former BOJ executive director in charge of monetary policy.
“There’s a possibility in April if you consider the current circumstances objectively,” former director Kazuo Momma said in an interview Tuesday. “Long-term yields won’t rise abruptly even if the YCC is scrapped” as long as the market environment continues to have little momentum for higher yields.