Bank of Japan policymakers were cautious not to indicate the central bank's first interest rate hike in 17 years signaled the beginning of a monetary tightening cycle, while underscoring the need to guide policy as appropriate, minutes of the March meeting show.
The Bank of Japan has effectively removed its yield cap in response to an unexpected surge in U.S. Treasury yields and entrenched cost-push inflation, sending its strongest signal yet that it is preparing to unwind monetary stimulus to come more into line with its global peers.