The Bank of Japan has started crafting measures to prevent long-term interest rates from surging in reaction to the imminent end of its ultraloose monetary policy, according to BOJ sources.
The measures are intended to demonstrate the central bank's willingness to pitch in with the government in navigating the economy through deflation and help put Japan's fiscal house in order without boosting the government's interest payments, the sources said Wednesday.
Among the measures is a declaration that the BOJ will maintain its zero-interest-rate policy for a little longer in a statement to be released when terminating the five-year-old quantitative easing policy.