-
Ueda Faces Market Fallout Risk as BOJ Mulls Yields, Prices, Yen
The Bank of Japan’s Kazuo Ueda is in a tight spot. If he stands pat on policy this week he risks sending the yen to a multi-decade low and opening up his yield control program to speculative attack in the market. At the same time, if he raises the ceiling on 10-year yields under yield curve control — explicitly or implicitly — the governor may invite long-term rates to rise to levels inconsistent with economic fundamentals, jeopardizing his goal of achieving stable inflation. In a sign of just how fraught the discussions on policy may be, BOJ officials are likely to monitor yield movements until the very last ... (full story)