BOJ May Announce Widening of 10-Year Bond-Yield Target, Kanno Says

The transcript discusses the Bank of Japan's (BOJ) potential changes to its yield curve control policy, focusing on widening the 10-year bond yield target. It highlights the significance of these changes for banks, especially regional ones, and the broader economy. The BOJ's cautious communication strategy aims to avoid market disruptions similar to past events in the US and Europe. Additionally, the transcript covers the shift in ETF purchases towards the TOPIX index and the political considerations influencing BOJ's decisions. The role of key BOJ leaders in shaping these policies is also examined.

What factors might lead the BOJ to adjust its ETF purchasing strategy?

What role do regional banks play in the context of the BOJ's monetary policy?

How does the communication between the government and the BOJ affect monetary policy decisions?