BOJ Maintains 10-Year JGB, Yield Target at About 0.000%

The transcript discusses the Bank of Japan's (BOJ) current stance on interest rate policy, highlighting the desire of financial institutions for a rise in long-term interest rates to boost profitability. However, due to the Consumer Price Index (CPI) being below the 2% target, the BOJ is cautious about tightening policy, as it could lead to yen appreciation. The transcript also touches on the nervousness of central banks about market volatility, referencing the 2013 taper tantrum. It concludes with speculation on potential future adjustments by the BOJ, which could involve fine-tuning the 10-year government bond yield, though this carries risks.

Why are financial institutions in Japan hoping for a rise in long-term interest rates?

• To decrease inflation

• To increase profitability

• To reduce yen appreciation

• To stabilize the stock market

What is a potential risk if the BOJ mentions tightening policy?

• Increase in inflation

• Decrease in stock prices

• Drop in GDP

• Significant yen appreciation

What event in 2013 is referenced as causing market volatility?

• The taper tantrum

• The Brexit vote

• The global financial crisis

• The eurozone crisis

What might the BOJ adjust to signal a potential tightening?

• Currency exchange rates

• Short-term interest rates

• 10-year government bond yield

• Inflation targets

When do market participants believe the BOJ might make adjustments?

• Never

• In five years

• Next year or the year after

• Next month