BOJ leaves policy unchanged, as expected (but widens band of YCC)

The outcome of the Bank of Japan December 2022 monetary policy meeting.

Main policy unchanged, as widely expected:

• to maintain a -0.1% target for short-term rates
• and a 0% cap for the 10-year bond yield (around 0%)

more to come (see separate post)

The bombshell is the Bank of Japan adds that they will review operation of yield curve control

• that they will expand the band around its 10 year yield target to 0.5% above and below (from 0.25)
• will increase bond purchases to JPY 9 tln a month in Q1

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Background to this:

• Bank of Japan December monetary policy statement due Tuesday, 20 December 2022 - preview

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Full text: Statement on Monetary Policy

Bank of Japan Governor Kuroda is speaking at his news conference circa 0600 GMT.

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