Violent Market Swings Await Day the BOJ’s Yield Anchor Lifts
- Market watchers draw parallel with recent UK market chaos
- Most economists see Kuroda sticking with YCC while at the helm
Most economists expect Haruhiko Kuroda to stick with yield-curve control.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
Even a modest tweak to the Bank of Japan’s entrenched monetary policy could set a wrecking ball in motion through worldwide markets, if traders project the last heavyweight anchor stopping global yields from rocketing further is finally shifting.
Most economists expect Governor Haruhiko Kuroda to stick with yield-curve control, until he steps down in April, even as the yen slides. But there’s no denying his policy framework has been under more pressure this year than it ever has since its formation in 2016.