Bank of Japan Governor: "Recent Long-Term Rate Increases Somewhat Fast"

Kazuo Ueda, Governor of the Bank of Japan, stated on December 9 that the recent pace of long-term interest rate increases in the market is "somewhat fast."

According to Kyodo News, Governor Ueda made these remarks during a session of the House of Representatives Budget Committee, responding to questions by saying that he would closely monitor market trends.

Kazuo Ueda, Governor of the Bank of Japan. Photo by AFP Yonhap News

He also reiterated the existing policy, emphasizing that in the event of an exceptionally rapid rise, the Bank of Japan would respond flexibly, such as by increasing government bond purchases.

In the Tokyo bond market, the yield on the benchmark 10-year government bond has continued its sharp upward trend, reaching its highest level in about 18 and a half years since June 2007.

The previous day, the 10-year yield rose to 1.97%, nearing 2%.

With market expectations growing that the Bank of Japan will raise its policy rate at the Monetary Policy Meeting scheduled for December 18-19, the proactive fiscal policy stance of Cabinet member Sanae Takaichi is also contributing to the rise in interest rates.

However, on this day, the 10-year government bond yield slightly retreated to 1.96%.

This content was produced with the assistance of AI translation services.