Ranil Salgado, the International Monetary Fund’s (IMF) mission chief to Japan, called the Bank of Japan’s (BoJ) surprise revision to the yields band a sensible step, in a statement released on Wednesday.

Key takeaways

“With uncertainty around the inflation outlook, the Bank of Japan’s adjustment of yield curve control settings is a sensible step including given concerns about bond market functioning.”

“Providing clearer communications on the conditions for adjusting the monetary policy framework would help anchor market expectations and strengthen the credibility of the Bank of Japan’s commitment to achieving its inflation target.”

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