GO
Loading...

Enter multiple symbols separated by commas

BOJ's Fukui: Need to Keep an Eye on Long-Term Rates

Bank of Japan Governor Toshihiko Fukui said on Friday the central bank needs to keep a close eye on recent rises in long-term rates and how they could affect Japan's economic and price outlook.

"The recent movements in long-term rates are a relatively new phenomenon so we need to watch them closely," Fukui told a news conference after the BOJ's policy board, as expected, voted unanimously to keep interest rates on hold.

Fukui said it would be "very problematic" if the rise in bond yields signalled that market players are cautious about rising inflationary expectations.

But he added that inflationary expectations remain stable globally for now.

Japanese bond yields have risen sharply since late last month on surging yields of U.S. Treasuries and on expectations that a recent batch of upbeat economic data would lead to an early BOJ rate hike.

The BOJ has stood pat on policy after raising its key policy rate to a decade-high 0.5 percent in February, which was the first rate rise since July last year.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Free college education for Chrysler employees

    Karl McDonnell, Strayer Education CEO, discusses Chrysler's new policy for free college tuition to all dealership employees.

  • How will interest rates affect us? :Pro

    Mike Feroli, JPMorgan chief U.S. economist, and David Zervos, Jefferies chief markets strategist, forecast how interest rates might affect valuation in the markets and expectations in the labor market.

  • #MayThe4thBeWithYou

    May 4th is Star Wars fan's day. Fans dress up as their favorite characters and celebrate across the world in parties like "Cantina at the end of the universe" and other gatherings.