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MNI BRIEF: BOJ To Fight Higher Rates, If Needed: Kataoka

TOKYO (MNI)

The Bank of Japan BOJ will take action if JGB yields rise sharply in Japan following a move higher in overseas rates, policy board member Goushi Kataoka said Wednesday, although he said the current market conditions are far from where the central bank would need to act.

There has been speculation in recent weeks as to how the BOJ would adapt its target range under the current policy review, although former bank insider Hiromi Yamaoka told MNI there was little that could be done other than modest tweaks.

The 10-year Japanese government bond yield rose to 0.175% on Friday, towards the higher end of the BOJ's tolerated range of -0.2% to +0.2% -- the highest level in more than five years but the BOJ didn't act. The yield was last at 0.12% as on Wednesday.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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