The BoJ have framed this decision around market functioning, with Governor Kuroda saying that this was
not a rate hike. And to be fair, they did announce an increase in bond purchases to 9 trillion yen per
month, up from 7.3 trillion yen. Who knows where JGBs would be trading without that. Nevertheless, these
moves are justifiably being seen as the beginning of a move away from the ultra-loose monetary policy of
recent years and with global implications.