The Bank of Japan showed investors last week just how tenacious it would be in keeping interest rates locked near zero in the world’s third-biggest economy despite skyrocketing inflation across the globe and the risk of weakening the yen to damaging levels.
The country was the epicenter of market drama after the Bank of Japan set in motion a four-day long unlimited buying spree of government bonds on March 28 to stave off a global debt rout that threatened to prize open its iron-clad grip on yields.
The move sent the yen plummeting to its lowest since 2015, sparking a flurry of comments from officials and a face-to-face meeting between BOJ Gov. Haruhiko Kuroda and Prime Minister Fumio Kishida.