12-20-2022, 09:43 PM
Quote:The Bank of Japan made a surprise decision to let a benchmark interest rate rise to 0.5% from 0.25%, pushing the yen higher and ending a long period in which it was the only major central bank not to increase rates. The BOJ said the yield on the 10-year Japanese government bond could rise as high as 0.5% from a previous cap of 0.25%. The central bank has set a target range around zero for the benchmark government bond yield since 2016 and used that as a tool to keep overall market interest rates low. The 10-year yield, which had been stuck around 0.25% for months because of the central bank cap, quickly moved up to 0.46% in afternoon trading. The yen rose in tandem. In Tuesday afternoon trading in Tokyo, one dollar USDJPY, -3.33% bought between 133 and 134 yen, compared with more than 137 yen before the BOJ’s decision.Yen surges as Bank of Japan surprises by letting benchmark rate rise - MarketWatch