YCC (Yield Curve Control)

Yield Curve Control (YCC) is a monetary policy tool where a central bank sets target interest rates for specific government bond maturities and commits to buying or selling bonds to keep yields near those targets. The goal is to influence long-term interest rates, making borrowing cheaper across the economy, which can support economic growth and stabilize financial markets. By managing the yield curve directly, the central bank can better control overall financial conditions without using traditional rate adjustments alone.