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MNI BRIEF: BOJ May Mull YCC End As Early As January; Ex-aide

(MNI) Tokyo

The Bank of Japan may consider removing yield curve control as early as January meeting but it doesn’t mean a withdrawal of easy policy, just a change of method, former BOJ executive director Kazuo Momma said at the weekend, News Socra reported.

Bond market distortions continue despite the BOJ’s recent decision to widen the toleration range for10-year JGB yields and upward pressure continues, he said. “It’s just a matter of time until speculators strengthen bond selling pressure again,” Momma said.

Upward pressure on interest rates has been triggered by high inflation rates overseas, a coming change of the BOJ governor in April and speculation over reviewing a joint accord between the BOJ and the government are behind strong speculation in financial markets, Momma noted..

The BOJ’s policy-decision meeting is scheduled for Tuesday and Wednesday (MNI POLICY: BOJ Eyes Maturities As Yield Pressure Persists).

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
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MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
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