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FollowBank of Japan Yield Curve Control Policy
By 2025 and 2026 the debate had shifted to the rate path and external risks
Key takeaways
- The YCC timeline shows how the BOJ moved from massive asset purchases to explicit rate control and then to a cautious exit once wage and inflation dynamics looked more durable.
- Each YCC adjustment mattered beyond Japan because it reset expectations for bond yields, the yen and how far a major central bank can suppress long-term rates before market functioning breaks down.
- Ending YCC in March 2024 did not end intervention: the key question now is how quickly the BOJ can raise short rates and reduce bond purchases without destabilizing the JGB market.
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