Central Banks
BOJ Should Review Yield Curve Control Under Ueda, Ex-Finance Official Says
- Easing has caused bond market distortion, weak yen: Nakao
- Some short-term shocks will be expected if YCC reviewed
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The Bank of Japan should review its yield curve control program under its incoming governor, a former top finance ministry official said ahead of the central bank’s first leadership change in a decade.
The ongoing monetary easing has caused side effects including distortions in the bond market, a drop in the currency and a weakening of fiscal discipline, according to Takehiko Nakao, a former Vice Minister for International Affairs. He stressed the need for the policy tweak while also noting that such a move will also come with risks.