The Bank of Japan just shocked markets with a policy tweak — here's why it matters
2023-07-30 09:36:28 source：CNBC
July 30, 2023
The Bank of Japan announced Friday "greater flexibility" in its monetary policy — surprising global financial markets.
The central bank loosened its yield curve control — or YCC — in an unexpected move with wide-ranging ramifications. It sent the yen whipsawing against the dollar, while Japanese stocks and government bond prices slid.
Elsewhere, the Stoxx 600 in Europe opened lower and government bond yields in the region jumped. On Thursday, ahead of the Bank of Japan statement, reports that the central bank was going to discuss its yield curve control policy also contributed to a lower close on the S&P 500 and the Nasdaq, according to some strategists.
Read more: