BOJ deploys funds-supply tool again as yields creep up By Reuters
![BOJ deploys funds-supply tool again as yields creep up](https://nlbulletin.com/wp-content/uploads/2023/01/BOJ-deploys-funds-supply-tool-again-as-yields-creep-up-By-780x470.jpg)
[ad_1]
TOKYO (Reuters) – The Bank of Japan said on Friday it will extend five-year loans against collateral to financial institutions, the second time it has made such an offer after ramping up the funds-supply operation this month as a tool to defend its yield control policy.
The central bank will conduct the funds-supply operation on Tuesday, under which it will offer loans with a five-year duration from Feb. 1, according to a statement.
The amount of loans to be offered will be announced on Tuesday, it added.
The announcement came after the 10-year Japanese government bond (JGB) yield crept up near the BOJ’s 0.5% cap on Friday, partly on data showing core consumer inflation in Japan’s capital Tokyo hit a near 42-year high of 4.3% in January.
[ad_2]
Source link