Bank of Japan holds interest rates, makes yield curve control policy more flexible
Also Read: The US Fed rate hike leads to volatility in markets as indices decline 0.6% Japanese markets declined, with the Nikkei falling over 2% to around 32,275. However, the Tokyo Stock Exchange's banking index rose on the prospect of a steeper yield curve, which would revive profit from lending.
The index gained as much as 4.6% to reach an eight-year high and was last up 4.2%, Reuters reported. Amid growing concerns over the rising side-effects of prolonged monetary easing, the BOJ has been under pressure from investors to allow yields to rise all year, with wages and inflation rising.
Data showed core consumer inflation in Japan's capital slowed in July but remained well above the central bank’s 2% target. Meanwhile, earlier this week, the US Federal Reserve raised its benchmark lending rate by 25 basis points (bps) to a target range between 5.25% and 5.5%, its highest level since 2001.
The European Central Bank (ECB) also, on Thursday, raised interest rates by 25 bps to its highest level since 2001 to 3.75%. Catch Live Market Updates here (With inputs from Reuters)Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!
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