Bank of Japan Begins to Break From its Ultra-loose Fiscal Policy
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Japan's central bank has spent the entire year zigging while the rest of the world zags, maintaining an ultra-loose fiscal policy as its peers cranked up interest rates to combat inflation. But now, the nation is starting to fall in line... depending on who you ask.
On Tuesday, the Bank of Japan didn't yield to calls to increase interest rates with the yen still falling in value, but it did adjust its yield curve control policy, allowing 10-year bond yields to fluctuate plus-or-minus 0.5%, up from 0.25%. The move stunned markets, even though no one agrees on what it means.
Source Fool.com
