Hideo Hayakawa is a former chief economist and director at the Bank of Japan. He spoke in an interview with Bloomberg (gated).
- He is expecting the BOJ will probably adjust its yield curve control program at its policy meeting this month (July 27 and 28), citing inflation that is stronger than expected.
- “I expect they will make some kind of adjustment to YCC this month”
- Doubling the BOJ’s allowed trading band for the 10-year yield from 0.5% either side of zero is a likely way to adjust yield control
- “The BOJ is very close to the situation the Fed was once in — saying inflation is transitory and then being forced to ditch that stance after the situation worsens”
Earlier post is here:
BoJ