The Bank of Japan announced the "main opinions" of the Monetary Policy Meeting held by December 20, which decided to revise the monetary easing measures, and expressed concern over the deterioration of the functioning of the bond market due to the large-scale monetary easing by policy board members. I realized that there was a succession of voices.
According to this, while the BOJ is purchasing a large amount of government bonds as part of monetary easing, at the meeting, the Policy Board members said, "There is a distortion in the price formation of 10-year government bonds," and "The functioning of the bond market has deteriorated." If this situation continues, it could adversely affect the environment for corporate bond issuance and hinder the spread of the effects of monetary easing."
Based on this, the Bank of Japan unanimously decided to revise its monetary easing measures and raise the upper limit of the fluctuation range of long-term interest rates to about 0.5%.
On the other hand, some members said that the policy revisions "will help strengthen the sustainability of the current framework of monetary easing measures," and that "the easing stance should be maintained rather than making changes toward an exit from monetary easing." A remark was also made.
Until then, the Bank of Japan had expressed the view that raising the upper limit of the fluctuation range would be equivalent to tightening monetary policy, but at the meeting, a Cabinet Office attendee said, ``It is important to carefully explain the purpose of the policy to the outside world. ” was also ordered.
At the meeting, there was also an opinion calling for the review of large-scale monetary easing measures, saying, "It is necessary to verify at some point and judge the balance between effects and side effects."