MNI BRIEF: BOJ's Wakatabe Rules Out Yield Curve Adjustments

Bank of Japan Deputy Governor Masazumi Wakatabe reiterated on on Thursday that the central bank is not looking at yield curve control adjustments and does not see the recent rise in long-term interest rates as a problem.

“Japan’s long-term interest rate rose recently on the back of policy adjustments by the Fed. If the recent rise in Japan’s long-term interest rate is within a range between around plus and minus 0.25%, we don’t need to adjust the long-term interest rate range,” he told reporters, see: MNI INSIGHT: No BOJ Intervention Now As 10-Yr JGB Yield Rises.

When asked about additional easy policy, Wakatabe said now is not the time, although he did not rule out additional easy policy in the future. Several commentators have called for tweaks to policy settings by the BOJ, and the IMF even suggested adopting a shorter-range tenor on JGB purchases.