Bank of Japan Continues Monetary Easing, No Need for Yield Control Tweaks Noted in September Meeting

BOJ commits to extended monetary easing amidst positive views on price growth, confirms interest rates move in line with market operation policy, and envisages yield control policy changes only upon successful achievement of 2% inflation target.

Most Bank of Japan board members at the September meeting saw no need for additional tweaks to the yield curve control, supporting continued monetary easing to meet inflation and wage growth goals.
The BOJ further loosened its control on long-term interest rates at the October meeting, signaling a slow move towards dismantling its controversial monetary stimulus.
The BOJ adhered to its easy money settings and its commitment to supporting the economy until inflation consistently reaches its 2% target, indicating no immediate plans to phase out its large-scale stimulus program.
The central bank's decision in July to make yield control more flexible has been effective, with long-term interest rates moving in line with its market operation policy.
Board members agreed that discussion on abolishing a negative rate and yield control policy would only occur alongside the successful achievement of the BOJ's 2% inflation target.