Central Banks
BOJ Review Likely Needed After Kuroda Exits in 2023, Ex-Board Member Says
- Review could scrap negative rate, widen 10-year yield band
- Shifts wouldn’t equate to normalization, pause needed after
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The Bank of Japan will probably need another policy review after Governor Haruhiko Kuroda steps down from his long-held post in April, according to a recent member of the central bank’s board.
The assessment could be followed by a range of shifts as a result of closer scrutiny of policy side effects, said Makoto Sakurai, a former board member who remains in close contact with current BOJ officials. Scrapping the negative interest rate and widening the 10-year yield target band are possibilities, as is switching the longer yield target to a shorter maturity, he said.