Central Banks
BOJ Won’t Tweak Yield Control Next Week, Former Finance Official Says
- September likely the earliest for modifying YCC, Furusawa says
- Another FX intervention is unlikely, given current economy
BOJ headquarters in Tokyo.
Photographer: Kentaro Takahashi/BloombergThis article is for subscribers only.
The Bank of Japan is unlikely to make changes to its yield curve control program at next week’s policy meeting, judging from Governor Kazuo Ueda’s recent dovish tone, according to a former top official at the finance ministry.
“Given Ueda’s comments in India, it’s unlikely that the bank will modify the instrument at the upcoming meeting,” said Mitsuhiro Furusawa, a former vice minister of finance for international affairs. “In the past I thought July is possible, but the way he’s speaking, if he moves next week, it’ll be a major surprise.”