ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

BOJ bites the bullet with unexpected policy shift

Japanese central bank's hand forced by criticism over falling yen

Bank of Japan Gov. Haruhiko Kuroda has faced pressure as the BOJ's ultraloose monetary policy fueled price increases for imported goods.   © Reuters

TOKYO -- The Bank of Japan's surprise adjustment of its interest rate controls on Tuesday will have ripple effects for the economy and keep financial markets on edge over the possibility of another shock.

Market players were caught flat-footed by the BOJ's decision to raise the 10-year yield cap from 0.25% to 0.5%. The move was discussed in secrecy within the central bank. Gov. Haruhiko Kuroda and other top officials until recently talked down this possibility, saying widening the band would be a de facto rate hike.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more