BOJ must phase out yield cap, negative rate - govt panel member Okina

From channelnewsasia.com

The Bank of Japan (BOJ) must redefine its inflation target and phase out a radical yield-cap policy to mitigate mounting costs of prolonged monetary easing, Yuri Okina, a member of a key government panel and possible future BOJ executive, said on Friday. The BOJ remains an outlier in a global a wave of central banks tightening monetary policy by maintaining yield curve control (YCC), a policy under which it guides short-term interest rates at -0.1 per cent and caps the 10-year bond yield around 0 per cent.The negative short-term rate and the BOJ's relentless defense of its yield cap have drawn criticism for ... (full story)