Central bankers considered the idea to extend the maximum duration of cheap, fixed-rate funds offered via market operations from one year to two years. The Bank of Japan held off on new measures to calm the markets.
Hence, disappointment with the central bank has been expressed as Japanese equities futures slipped, the yen edged higher against the dollar and continued losses from 10-year government future bonds.
Concerns were raised as rising bond market yields have triggered increase in mortgage rates and further rise in yields would dent the recent economy's momentum under the current Prime Minister.
"We remain vigilant to long-term interest rate moves. It's undesirable for volatility to heighten, so we'll make efforts to reduce it," said Haruhiko Kuroda, current Bank of Japan Governor. Nippon's central bank released its official statement on the assessment of the economy - remained as the key factor behind the perceived lack of action from the BOJ. In fact, economic growth was actually faster than previously projected, continued growth on surplus was observed and as well as continued increase in lending.
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