Bank of Japan to cut rates, Barclays says
From Barclays:
The Bank of Japan (BoJ) did not ease further at its September meeting but adopted a new policy framework, "Quantitative and Qualitative Monetary Easing with Yield Curve Control" (QQEYCC), which consists of 1) yield curve control and 2) inflation-overshooting commitment based on its comprehensive assessment. Regarding yield curve control, BoJ aims to maintain the yield curve around the current level (eg, 10y JGB around 0%) by controlling both short- and long-term interest rates. Under the inflation-overshooting commitment, the BoJ intends to continue expanding the monetary base until core CPI stably exceeds 2% y/y instead of the previous time-based horizon of two years.
