Bank of Japan Governor Kuroda will complete his term on April 8. The March 9 & 10 monetary policy meeting will be his last.
The Bloomberg report is gated but, in brief, if you can't access it. The piece says that Kuroda could shock world markets again with policy tweaks or changes to ease the transfer to his proposed successor Kazuo Ueda. For incoming Governor Ueda, maintaining BOJ yield curve control policy is already a difficult challenge. While he wold prefer to take some time to thoroughly consider the unprecedented stimulus measures of the previous decade, Ueda will face intense market demand for change as soon as he assumes control of the BOJ. Because of this, several BOJ observers caution that Kuroda's farewell meeting, which ends on March 10, could come with a surprise.
- “It depends on market developments but I see a 50-50 chance” that the BOJ’s target yield band is widened again in March so the new leadership can examine policy in a calmer environment, said Ryutaro Kono, chief Japan economist at BNP Paribas SA.
- If the BOJ doesn’t move next month, Ueda may face “massive bond selling” before his first meeting, Kono added.
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Any tweak to reduce policy accommodation would be a tailwind for the yen
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USD/JPY is dribbling back from earlier highs:
