Can Ueda Take the Trauma Out of BOJ Watching?

For all his professed reluctance to embark on a dramatic shift, there is one preferred tool of his predecessor that new Bank of Japan Governor Kazuo Ueda should ditch: Shock therapy. Haruhiko Kuroda’s penchant for sharp moves in policy sowed a legacy of distrust that the new leader should distance himself from.

If monetary policy in the second-largest Asian economy is ever to return to a semblance of what used to be called “normal,” then some caution, deliberation and prudent signaling are great ways for Ueda to begin. Surprises have their role, especially if they juice the economy. But officials need to pick their shots. What’s needed is a listening tour, not another jolt. Take the trauma out of BOJ watching.