Bank of Japan (BoJ) board member Asahi Noguchi stated on Thursday that the recent increase in long-term bond yields is unlikely to affect the central bank’s upcoming bond taper plan scheduled for June.
Noguchi emphasized that the current environment differs significantly from the period when the BoJ implemented Yield Curve Control (YCC). He clarified that the size of the BoJ’s Japanese Government Bond (JGB) purchases is not viewed strictly through the lens of monetary policy.
Highlighting the importance of transparency, Noguchi said that tapering bond purchases should balance market predictability with flexibility. Discussions on whether to continue the current pace of bond tapering beyond April 2026 are expected to take place ahead of the next policy meeting.
He attributed the recent rise in yields on super-long bonds primarily to global trends, describing the moves as rapid but not abnormal. Noguchi cautioned against aggressive intervention to counter these yield fluctuations, deeming such actions inappropriate.
On broader economic concerns, Noguchi noted a gradual easing of uncertainties surrounding US-China trade tensions, though he acknowledged ongoing concerns about US tariff policies and their potential impact on Japan’s economy.
He underscored that the BoJ should refrain from adjusting interest rates amid persistent ambiguity about the economic outlook.
In market response, the USD/JPY currency pair remained relatively steady near 143.30, trading down 0.24% for the day at the time of reporting.
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