Japan’s 10-year government bond yield rose 2 basis points to 1.66% on Thursday after the Bank of Japan kept its policy rate unchanged at 0.5%, as widely expected. The decision was passed by a 7-2 vote, with board members Naoki Tamura and Hajime Takata again advocating a hike to 0.75%, repeating their stance from September. The central bank reiterated that policy normalization would resume if economic projections are met. However, newly elected Prime Minister Sanae Takaichi’s support for loose monetary policy complicates prospects for further tightening. Meanwhile, Economic Revitalization Minister Minoru Kiuchi said the government remains focused on boosting growth, underscoring Takaichi’s expansionary fiscal stance.
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