MNI BRIEF: BOJ Focused On Long-Term Rates In March-Minutes

A few Bank of Japan board members said that the BOJ must contain rising long-term interest rates through measures such as fixed-rate bond buying operations at the March 17-18 meeting, policy minutes released on Monday showed.

“There was a possibility that upward pressure on Japanese long-term interest rates would strengthen as the policy rate hikes in the United States were projected to be conducted more frequently and at an accelerated pace,” the minutes showed, See: MNI BRIEF:BOJ Minutes: Finer Communication Need On Easy Policy.

“It was important for the Bank to contain such upward pressure through various measures, including the fixed-rate purchase operations, thereby adhering to the guideline for market operations," the minutes said. The BOJ at the April meeting decided to offer the fixed-rate bond buying operations every day, see: MNI BRIEF: BOJ Clarifies On Fixed-Rate JGB Buying Operations.