Before I begin, thanks and h/t to JC in the comments on this post.
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Overnight from Bloomberg (gated), comments reported from a former BOJ executive director in charge of monetary policy, Kazuo Momma on the potential for an end to YCC in April (this month):
“There’s a possibility in April if you consider the current circumstances objectively,”
“Long-term yields won’t rise abruptly even if the YCC is scrapped” as long as the market environment continues to have little momentum for higher yields.
The report adds:
- any change to the YCC has to come without prior warning, a stance that was also indicated last week by Shinichi Uchida, the BOJ’s key policy architect.
- Momma didn’t rule out the possibility that the BOJ will decide to leave the yield curve control program unchanged at its April 27-28 gathering.
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Earlier post today on BOJ YCC:
A dilution of BOJ ultra easy policy, such as ending YCC, should be a tailwind for yen.
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Ueda's first meeting as Bank of Japan governor is on April 27 and 28:
