March 29, 2023 03:03 GMT
MNI BRIEF: BOJ Faces JPY50 Trln Loss If 10-Yr Hits 2% - Uchida
Bank of Japan Deputy Governor Shinichi Uchida said on Wednesday the central bank would face an unrealised loss of JPY50 trillion on government bonds it held if the 10-year interest rate rose to 2% from the 0.5% it traded at in February.
Uchida also told lawmakers it would be difficult for the BOJ to preemptively make market players incorporate policy changes into market pricing of bonds.
Uchida, who took office on March 20, said policymakers would decide on monetary policy based on available economic data, and if the BOJ flagged policy changes it would throw financial markets into confusion. He added the BOJ will pay attention to the stability of financial markets when tweaking monetary policy.
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