BoJ will reduce pressure on Yield Curve Control
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BoJ will reduce pressure on Yield Curve Control

Supply shortages and continued virus caution will result in a weaker recovery in Japan than most anticipate. With wage growth sluggish too, the Bank of Japan won’t see a need to lift its policy rates. However, we expect the Bank to widen the tolerance band around its 10-year yield target as its swelling holdings risk stifling the functioning of the bond market.
Marcel Thieliant Senior Japan, Australia & New Zealand Economist
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