Bank of Japan: A Key Watch for Investors in 2024

A Long-Awaited Change in Japan’s Monetary Policy Framework

Investors around the world will be closely monitoring Japan’s monetary policy framework in 2024, as a long-awaited change seems imminent. For decades, Japan has relied on ultra-loose monetary policy to try to stimulate its dormant economy. However, interest rates have remained low, with rates below zero since 2016 and not above one percent this millennium. Additionally, the Bank of Japan has experimented with yield curve control and quantitative easing, resulting in the central bank owning a significant portion of outstanding Japanese government bonds.