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Japan’s Matsuno: Monetary policy falls under the jurisdiction of the BOJ

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  • BOJ decision meant to enhance flexibility in forming long-term interest rates smoothly

They don’t want to be seen overstepping but as is tradition in Japan, the government and BOJ are more or less one entity. Yes, there is a segregation in responsibilities but in terms of policy direction, they always have to be aligned before having to go out to communicate anything to markets and the public.

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