BoJ’s Noguchi: Recent rise in long-term rates likely won't have impact on our new bond taper plan

Bank of Japan (BoJ) board member Asahi Noguchi said on Thursday that the “recent rise in long-term rates likely won't have an impact on our new bond taper plan to be decided in June.”

Key quotes

Most important thing is that things are different now than during period when we had YCC.

We don't look at the size of our JGB buying from standpoint of monetary policy.

In tapering bond buying, giving market predictability, while maintaining flexibility, is most important.

Whether to maintain current pace of bond taper beyond April 2026 will be something to be discussed leading up to the next policy meeting.

Recent rise in super-long bond yields likely driven by global trend in yields, they are rapid but not necessarily abnormal.

Don't think it's appropriate to recklessly intervene to correct bond yield moves.

Cloud of uncertainty clearing somewhat in US-China trade tension.

Markets restoring some calm, though uncertainty surrounding US tariff policy and impact on Japan's economy high.

BoJ shouldn't move on rates when there is lack of clarity on economic outlook.

Market reaction