The Bank of Japan decided to maintain its large-scale monetary easing measures at its monetary policy meeting held until the 18th.
As the selection of a successor to Governor Kuroda, who will end his term in April, is in full swing, the market's view that the BOJ will revise its monetary easing measures is deep-rooted, and the BOJ will continue to be required to make difficult decisions.
Ahead of this meeting, the market speculated that the BOJ would revise its monetary easing measures following last month's move, prompting an increase in selling orders for government bonds in anticipation of a rise in long-term interest rates. A fierce battle unfolded between the Bank of Japan, which was trying to hold back.
Regarding this, at a press conference, Governor Kuroda expressed his negative view of further raising the upper limit of long-term interest rate fluctuations by revising monetary easing measures at this point, and said that large-scale easing measures under the current framework emphasized the stance of continuing
As a result, the long-term interest rate in the bond market temporarily fell to 0.36%, but there are also voices in the market that question the sustainability of the current policy of continuing to purchase a large amount of government bonds, and expectations for a revised easing policy. is expected to continue to smolder.
As the selection of the successor to Governor Kuroda, who will end his term in April, is in full swing, the market's interest in how monetary policy will proceed under the new system is increasing.
Under these circumstances, if investors become more active in anticipation of revisions to monetary easing measures, the bond and foreign exchange markets may again fluctuate significantly, and the BOJ will continue to be required to navigate the difficult situation.