Market Chatter: Japan to Revise Monetary Policy Language in Economic Blueprint Draft Amid Bond Selloff
Japan government plans to revise the language on monetary policy in its economic blueprint to emphasize the need for the Bank of Japan (TYO: 8301) to pursue stable inflation, Reuters reported Wednesday, citing a government draft.The new draft has raised concerns among the investors over the central bank's independence, fueling a selloff in government bonds and pushing the bond yields to a 30-year high on Wednesday.The revised draft, to be cleared by the cabinet by this month, emphasizes the need for the BOJ to conduct monetary policy "to achieve stable inflation" and retains language calling on the central bank to align its policy decisions with the government's economic agenda.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
