Back to today’s briefing

Story perspectives

Bank of Japan Faces Tough Choices Amid Rising Yields

12/4/2025

33 8

Summary

Story summary

The Bank of Japan faces a policy decision as rising government bond yields threaten normalization, with the 10-year at 1.917% (highest since 2007) and the 30-year at 3.436%.
Inflation topped the 2% target for 43 months, limiting BoJ options to raising or cutting rates.
Japan's debt-to-GDP near 230% and a planned stimulus package heighten macro risks.
Analysts warn that returning to quantitative easing could weaken the yen and worsen inflation.

1 of 1

Story summary

The Bank of Japan faces a policy decision as rising government bond yields threaten normalization, with the 10-year at 1.917% (highest since 2007) and the 30-year at 3.436%.
Inflation topped the 2% target for 43 months, limiting BoJ options to raising or cutting rates.
Japan's debt-to-GDP near 230% and a planned stimulus package heighten macro risks.
Analysts warn that returning to quantitative easing could weaken the yen and worsen inflation.