％Germany Government Bond 10Y
DE-10Y
Mentioned
Impact on stocks 2
Others
％ECB rates
ECBRATES
Mentioned
BOJ minutes show board members support further rate hikes to control long-term yields
MacroDigital Finance
Minutes from the Bank of Japan's June meeting show that some board members backed additional rate increases to stabilise long-term interest rates that have surged on inflation concerns. At the meeting on 15 and 16 June, the board raised the policy rate from 0.75 percent to 1 percent, the highest level in 31 years. Several members called for continued rate hikes, citing a weak yen, higher import costs, and the pass-through of costs to private-sector selling prices. Meanwhile, long-term Japanese government bond yields hit a 29-year high amid fiscal worries and inflation fears from the war in Iran that has pushed up oil prices. A minority of members viewed the spike in long-term rates as driven mainly by Middle East factors, and noted that raising the policy rate to maintain price stability would lead to stability in long-term rates, reflecting the BOJ's intention to respond to the surge in long-term yields.