Central Banks
Kuroda Shocker Is Just the Start of BOJ’s Risky Path Toward Exit
- Kuroda’s successor at Bank of Japan to navigate normalization
- Policy change could trigger sell-off in global bonds, equities
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Bank of Japan Governor Haruhiko Kuroda just gave investors a glimpse of what to expect when the world’s boldest experiment with ultra-loose monetary policy comes to an end.
In the face of sustained market pressure, Kuroda shocked markets Tuesday by saying he’ll now allow Japan’s 10-year bond yields to rise to around 0.5%, double the previous upper limit of 0.25%.