Bank of Japan to discuss YCC tweat on Friday – Nikkei
Nikkei reported that the Bank of Japan (BoJ) “will discuss tweaking its yield curve control policy at a policy board meeting Friday to let long-term interest rates rise beyond its cap of 0.5% by a certain degree”. If materialized, it would be a shift from the BoJ to a more flexible monetary policy approach.
The BoJ meets on Friday, and until this report, no change in its monetary policy stance was expected.
Market reaction:
The Japanese Yen jumped across the board after the Nikkei report. The USD/JPY dropped more than a hundred pips in a few minutes, falling from above 141.00 to 139.80. The pair remains under pressure, looking at the daily low at 139.37.