BoJ Governor: Bank’s Policy is in Line With Economic Situation
The yield of global bonds rose, and stock prices fell amid investors' concerns that large central banks will abandon the crisis regime sooner than expected. The Governor of Bank of Japan Haruhiko Kuroda excluded the possibility of raising interest rates in the near future, despite his optimism regarding economic prospects. The politician also said that inflation remains too low to justify the removal of incentives, and the CPI has not even reached 1%.
Kuroda also said that the fundamentals of stock prices remain stable, as the Japanese, American and European economies are in very good shape.
In accordance with the policy called yield curve control (YCC), the BOJ directs short-term interest rates at - 0.1%, and the 10-year bond yields are about zero percent to reach the inflation target of 2%.