SMBC Group's Financial and Credit Portfolio
BOJ's monetary policy
Timeline
Apr. 2013
Jan. 2016
Sep. 2016
Jul. 2018
Mar. 2021
Sep. 2021
Apr. 2022
Dec. 2022
Jul. 2023
Oct. 2023
Introduction of the Quantitative and Qualitative
Monetary Easing (QQE)
Introduction of Negative Interest Rate Policy
Introduction of QQE with yield curve control
Introduction of forward guidance for policy rates
Further Effective and Sustainable Monetary Easing
Introduction of Climate Response Financing
Operations
Clarification of consecutive fixed-rate purchase
Operations
Modification of the conduct of YCC
BOJ conducted YCC tweak to allow rates over 0.5%
Set to allow Long-Term Interest Rates to rise above
1.0% with revision to YCC
Three-tier system in
current accounts at BOJ
(0.1)%
Policy-Rate Balance
0%
Macro Add-on Balance
Basic Balance
+0.1%
Recent announcements
Dec. 2022
Modification of the conduct of Yield Curve
Control(YCC)
The following measures are decided at the December meeting to
encourage a smoother formation of the entire yield curve.
• Significant increase in the amount of JGB purchases:
from 7.3 trillion yen per month to about 9 trillion yen per month
• Expansion of the range of 10-year JGB yield fluctuations from the
target level: from around ±0.25% to around ±0.5%
• Nimble responses for each maturity:
Offer to purchase 10-year JGBs at 0.5% every business day
through fixed-rate purchase operations
Make nimble responses for each maturity by increasing the
amount of JGB purchases even more and conducting fixed-rate
purchase operations when deemed necessary
Jul. 2023
BOJ conducted YCC tweak to allow rates over 0.5%
• Offer to purchase 10-year JGBS at 1.0% every business day
through fixed-rate purchase operations, in the range of around
±0.5% from the target level, to attain its 2.0% inflation target.
Oct. 2023
Set to allow Long-Term Interest Rates to rise above
1.0% with revision to YCC
• While BOJ will maintain the target level of 10-year JGB yields at
around 0%, it will conduct YCC with the upper bound of 1.0% for
these yields as a reference.
Source: Bank of Japan
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