BOJ's Amamiya: Still uncertainty how much central banks can control yields - RTRS

BOJ Masayoshi Amamiya (Mr. BOJ), Executive Director of the Monetary Affairs Department, crossed the wires last minutes, via Reuters, commenting on the central bank’s new policy framework.

Key Headlines:

Central banks can affect long-term interest rates to a significant extent

There is still uncertainty on how much central banks can control yields, respond to shocks

View that a central bank can directly control long term interest rates has been seen repeatedly in history

Considering desirable yield curve is very complicated process that warrants comprehensive review of various factors

BOJ's yield curve control aimed at beating deflation, not at minimizing cost of fiscal policy by supporting bond prices

Markets seem to have responded smoothly to BOJ's new policy framework