BOJ Shifts Policy Framework to Target Japan's Yield Curve

The Bank of Japan shifted the focus of its monetary stimulus away from a rigid target for expanding the supply of money, to controlling the shape of yields across different maturities. Governor Haruhiko Kuroda led his board in keeping the benchmark rate for a share of bank reserves at negative 0.1 percent. The central bank said that the monetary base target, which previously had been set at annual increases of 80 trillion yen ($780 billion), may now fluctuate in the short term as policy makers seek to control the yield curve. Japan Macro Advisors Chief Economist Takuji Okubo and Rabobank Senior Foreign-Exchange Strategist Jane Foley discuss with Bloomberg's Anna Edwards on "Countdown."