A piece from Reuters on the Bank of Japan yesterday that may have slipped by:

  • "The latest steps marked a major turning point for Kuroda's stimulus program," a source said. "The reflationists have become a minority, which means the BOJ is turning more hawkish."

The gist of the article is deputy governor Masayoshi Amamiya leading moves away (ever so slightly, but still away) from the Bank's ultra-easing policy:

  • Interviews by Reuters with a dozen people familiar with the bank's thinking reveal for the first time that there were plans to raise rates twice this year.

That didn't happen, of course, but ….

  • Last week, the central bank took more subtle action, rolling back parts of its policies that have hurt banks, paralyzed Japan's bond market and distorted stock prices even as they failed to ignite healthy inflation. The move represented a compromise Amamiya forged with his boss, bank governor Haruhiko Kuroda, to appease doves on the policy board with a promise to keep rates very low for an extended period.

Piece is here for more

Amamiya is the chap front right