It is reported that the Bank of Japan has previously insisted on implementing monetary easing policies. As a result, the Japanese yen exchange rate has depreciated sharply, once falling by more than 30%. On December 20, the Bank of Japan issued a statement at noon that it would a

It is reported that the Bank of Japan has previously insisted on implementing monetary easing policies. As a result, the Japanese yen exchange rate has depreciated sharply, once falling by more than 30%.

12htmlOn March 20, the Bank of Japan issued a statement at noon that it would allow Japan 10-year government bond yield The increase to about 0.5% means giving up the original target of 0.25%. Affected by this news, the exchange rate of the yen against the US dollar rose by more than 2% in a short period of time.

Expert analysis pointed out that in the context of multiple rounds of interest rate hikes by major central banks around the world, the cost of the Bank of Japan continuing to maintain a loose monetary policy is very high. The Bank of Japan is no longer able to continue to buy Japanese government bonds to maintain interest rates, and it is inevitable that the monetary policy will begin to tighten.

However, this action of the Bank of Japan still exceeded the expectations of all industry insiders. The market originally expected that the Bank of Japan would gradually turn around next year.

As the last central bank among the world's developed economies to hold an interest rate meeting this year, Japan's move to expand the yield curve control range is indeed unexpected.

It is understood that the Japanese financial market quickly experienced turmoil in the afternoon. The Nikkei 225 index fell more than 3% at the opening, and the bond market also experienced violent fluctuations.

In addition to the Japanese market, Japan, as the last country in the world to adhere to a loose monetary policy, has also caused a series of reactions around the world by changing its interest rate target.

Economists are worried that given that the Japanese bond yield has been maintained at a low level and the yen index has remained weak, if the Bank of Japan's monetary policy turns inappropriately this time, it may cause serious shocks in the Japanese financial market and even have a negative impact on the global capital market.

text | Shen Jiahong title | Huang Zixin review | Zeng Yi