The Bank of Japan left its 0.5% yield cap in place at yesterday's meeting after hiking it in December. A move higher in it would be a tailwind for the yen.
Takatoshi Ito is a professor at Columbia University and a longtime associate of BOJ Governor Haruhiko Kuroda. Ito is in the running to become the new head of the Bank when Kuroda's term, and those of his deputies, expire on April 8.
- BOJ's next step may be to widen band around its 10-year yield target, could raise yield cap to 0.75% or 1.0% by mid-year
- BOJ likely won't tweak yield curve control at least until April
- BOJ may abandon negative rates this year depending on inflation , wage developments
- If BOJ were to abandon yield curve control, it would need to conduct comprehensive examination of its policy framework
Looks a bit like George Soros.