BoJ’s Kuroda says bank reviewing monetary policy
Bank of Japan Governor Haruhiko Kuroda said the central bank is considering taking steps to maintain market stability by adjusting its monetary setting in March.
Kuroda expressed his concerns about a rising yield curve which indicates the investors want to be compensated with higher yields for taking the risk of investing in long-term bonds despite expecting weaker economic growth.
Through setting a negative rate policy the bank had previously accomplished steepening of its yield curve, Kuroda said, adding that the board will likely consider expanding the implicit band for its ten-year JGB yield target. The governor explained that the BOJ will need to push the curve down due to the coronavirus pandemic’s impact on the economy.
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