boj speech, 2025-03-05
In the reduction plan, the Bank explained its thinking that (1) in principle, long-term interest rates are to be formed freely in financial markets, and the Bank expected that the rates would fluctuate to some degree in response to factors such as market views of economic activity and prices and developments in interest rates overseas, and that (2) in an exceptional situation where long-term interest rates rose rapidly in a manner that differed from normal market developments, the Bank, from the perspective of encouraging the stable formation of interest rates, would make nimble responses by, for example, increasing the amount of JGB purchases and conducting fixed-rate purchase operations of JGBs and the Funds-Supplying Operations against Pooled Collateral.
Sentiment: neutral
Topic: mp_interest_rate