MNI BRIEF: Markets To Determine Long-term Rates - BOJ's Ueda
BOJ's Governor discusses long-term rates.
Bank of Japan Governor Kazuo Ueda said on Tuesday that markets will determine long-term interest rates but the Bank will prevent them from surging.
Ueda told lawmakers that the BOJ will conduct daily operations to prevent surges in a flexible manner should long-term interest rates rise sharply.
He also said the BOJ will adjust the degree of easy policy if the year-on-year rise in the consumer price index accelerates in line with the BOJ’s forecast.
The BOJ will adjust its policy interest rate if the risks to economic activity and prices change, he said.
The 10-year JGB yield rose to 1.1% on Thursday, its highest level since July 2011 and the 10-year bonds traded at 1.050% mid-Tuesday. (See MNI POLICY: BOJ Board Weighs Pace, Scale Of JGB Reductions)