BOJ’s Ueda: Long-Term Interest Rates Set by Markets

Ueda's framing matters because it signals the BOJ is comfortable letting the bond market, not the central bank, price long-term yields — a notable stance for a central bank that has spent years suppressing them. His comment that underlying inflation is very close to 2% gives that hands-off posture a rationale, since the stated goal is now durability rather than stimulus. For yen rates and carry-sensitive assets, the open question is whether long-term yields stay orderly as market pricing does more of the work.