BoJ Governor Haruhiko Kuroda told the parliament today that “it’s important to keep the yield curve stably low for the time being.” The central bank allows 10-year JGB yield to move inside a band around 0% to “enhance bond market functions”. But given recent surge in yields, “much more debate” was needed before deciding to widen the band.
“It’s a difficult decision,” Kuroda said, “the economy remains under pressure from the COVID-19 pandemic.”
“We have been and must continue to buy ETFs flexibly,” he said. “We’ll discuss at the March review how specifically we could make our purchases more nimble”.
