Kurita is the brand new head of the FSA and he mentions that:
“With long-term rates of interest staying round 0.6%, I do not assume it would have a lot of an affect on Japanese banks. Until charges surge in a brief time frame in Japan the way in which they did within the US, I consider the banks can deal with the scenario.”
I feel the extent that he’s highlighting is a bit telling in the place the BOJ is planning to permit 10-year JGB yields to linger for now. As we’ve got seen to date this week, the edge appears to be round 0.65%.