We've been posting on this for months now while its moved from hints and speculation and entered into the 'done deal' realm.
Nikkei:
- The Japanese government must talk with the next Bank of Japan governor about whether to rework the joint accord setting a 2% inflation target, Prime Minister Fumio Kishida said on a radio program that aired Tuesday.
- "We'll build a relationship of trust with the new governor and confirm how we will work together," Kishida said.
- The radio program was recorded Dec. 19, just before the BOJ's surprise decision to widen its target band for long-term interest rates in a move that many market watchers see as laying the groundwork for a pivot to less accommodative policy.
Bank of Japan Governor Kuroda's term finishes up on April 8. A new agreement between Japan's government and the Bank of Japan would pave the way for a dilution of the current ultra-easy BOJ monetary policy and would be yen-supportive at the margin.
USD/JPY update:
Japanese markets open today after their NY break.