FX.co ★ Japan 10-Year Yield Climbs After BOJ Decision

On Thursday, Japan's 10-year government bond yield increased by 2 basis points, reaching 1.66%, following the decision of the Bank of Japan to maintain its policy rate at 0.5%. This move was anticipated and was confirmed with a 7-2 vote. Notably, board members Naoki Tamura and Hajime Takata voiced their continued support for raising the rate to 0.75%, maintaining their position from September. The central bank has reaffirmed its commitment to resuming policy normalization, contingent on favorable economic forecasts. In contrast, the newly elected Prime Minister, Sanae Takaichi, has expressed her backing for a more accommodative monetary policy, adding complexity to potential future tightening measures. Simultaneously, Economic Revitalization Minister Minoru Kiuchi emphasized the government's priority of fostering economic growth, aligning with Takaichi's expansionary fiscal approach.