What BOJ Didn’t Say

The Bank of Japan (BOJ) ended a two-day meeting on Wednesday with a statement that was more important for what it did not say.

The central bank said nothing about the need to address heightened uncertainty in bond markets, which is a result of its recent radical monetary policy. But analysts were not alarmed by the silence, saying what was important was that the BOJ takes measures in the coming months to ease market volatility rather than make statements now that could add to the confusion.

Yields on benchmark 10-year Japanese government bonds, also known as JGBs, have doubled since the BOJ said in early April it would pump $1.4 trillion into the economy to boost inflation to 2 percent in two years. Yields rose after the BOJ’s statement on Wednesday to around 0.885 percent.


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