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Bank of Japan’s Policy Shift Ushers in a New Era for Investors
The Bank of Japan (BOJ) has bid farewell to its negative interest rate policy (NIRP), yield-curve control (YCC) and quantitative and qualitative easing (QQE), marking the end of an era of extraordinary monetary easing. This paves the way for a more normalized Japanese bond market, offering fresh opportunities for investors who have been wary of this space over the past decade. The BOJ's shift from a complex and overly accommodative stance (combining NIRP, YCC and QQE) to a 0%–0.1% positive policy rate and a simpler approach was no surprise. The fundamentals were supportive, and the changes were well-telegraphed ... (full story)