Bank of Japan's Policy Shift and Global Yield Impact: What You Need to Know

The Bank of Japan (BOJ) is set to hold its penultimate meeting of the year next week, with market observers expecting the central bank to raise its inflation projections and potentially make adjustments to its yield curve control policy. The BOJ has been cautious in unwinding its ultra-loose monetary policy, but recent tweaks to its policy have surprised investors and rocked markets. The central bank's monetary policy is complex and multi-faceted, with a focus on price stability and achieving sustainable inflation driven by domestic demand. The BOJ has also adopted negative interest rates and implemented yield curve control as part of its unconventional policy measures.