Central Banks
BOJ to Build Case for Big Move in Latter Half of 2024, BE Says
- Ueda seen re-embracing OCR, scrapping YCC in main scenario
- BOJ to widen yield band or shorten maturity in risk view
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The Bank of Japan will gradually build a case for a major overhaul of its stimulus framework in the second-half of next year, using the results of a review to support its move, according to Bloomberg Economics.
Governor Kazuo Ueda is aware that the current yield curve control stimulus framework is unsustainable, as it distorts prices, lacks flexibility, needs big purchases of government bonds and leaves the yen vulnerable to speculators, BE’s Taro Kimura wrote in a report released Tuesday.