- It is not so much about fiscal considerations
- But mainly to avoid excessive volatility from negatively impacting the economy
- It is a preventive measure against uncertainties in the bond market
- The decision is based on market movements during April and May
Prior to the decision, there has been heavy scrutiny on Japan’s debt and finances amid the resurgence in yields after the early April drop. This a good snapshot by Reuters on the debt problem faced by major economies as we look to the years ahead:
This article was written by Justin Low at www.forexlive.com.