Takehiko Nakao is a former Vice Minister for International Affairs. He was speaking in an interview on Monday:
- “The yield curve control should be reviewed, even if that results in short-term shocks”
- “This can’t go on forever.”
- ongoing monetary easing has caused side effects including distortions in the bond market, a drop in the currency and a weakening of fiscal discipline
- he noted that a move will come with risks
Bloomberg has done the report on this. Bloomberg is gated.
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Moves to dial back the current level of ultra-easy Bank of Japan monetary stimulus are seen as yen positive, or at least not yen negative.
To the downside 128 ish seems a bit of a zone of support. If you were yen bullish though there are 4 big figures of space before you'd have to contend with it (a speed hump circa 130 though). Comments welcome!
