TOKYO : Bank of Japan Governor Kazuo Ueda said on Friday the central bank stands ready to increase government bond buying if long-term interest rates rise sharply.
“We expect long-term interest rates to fluctuate to some extent” reflecting changing market views on Japan’s economic outlook, Ueda told parliament, when asked by an opposition lawmaker on recent rises in bond yields.
“But when markets make abnormal moves and lead to a sharp rise in yields, we are ready to respond nimbly to stabilise markets” such as by increasing bond purchases, he said.
Source: CNA
