On the 20th, the Bank of Japan decided to revise the current large-scale monetary easing measures and raise the upper limit of the fluctuation range of long-term interest rates from about 0.25% to about 0.5%.
While there is a view that the depreciation of the yen will be corrected and inflation will come to a halt, others have pointed out that it will lead to a rise in fixed interest rates on housing loans, and the impact of the revision of the easing measures on the Japanese economy remains to be seen. Be the focus.
At a press conference on the 20th, Bank of Japan Governor Kuroda said that this revision was not an interest rate hike or monetary tightening, but that it would not have a negative impact on the economy.
However, the yen's appreciation against the dollar accelerated as market perception spread that this was a de facto monetary tightening.
If the yen appreciates against the yen, there is a view that inflation will come to a halt and the burden on households and companies will be reduced. Negative effects have also been pointed out, such as the possibility of higher fixed interest rates on loans.
For this reason, the Bank of Japan will continue monetary easing while assessing the impact of this revision on the Japanese economy, aiming to achieve the 2% inflation target accompanied by wage increases.
Until now, the Bank of Japan has taken the position that it would not consider raising the upper limit of the fluctuation range of long-term interest rates because it would be a tightening of the financial system, but the financial market has been puzzled by the fact that it has overturned this and decided to revise it. A polite explanation is required just because it is raised.