TOKYO -- New Bank of Japan Gov. Kazuo Ueda on Monday underlined his intention to maintain the unconventional monetary policy of the last 10 years, noting that a sudden shift in monetary policy would cause disruption to the financial system.
More specifically, Ueda backed yield curve control (YCC) and negative rates -- two of the most controversial elements of Japan's monetary policy. YCC is a policy of pegging 10-year Japanese government bond yields around zero, while the negative rates policy (NIRP) keeps short-term rates at minus 0.1%.
