The BOJ today left everything unchanged but reaffirmed their comment to Yield Curve Control. Kuroda: “not considering accepting yield gains or raising long term JGB target just because yields are rising overseas”. Yeah tough guy! You tell ’em. But oh, if you want this credibility Kuroda-San, then what happens if 10yr yields fall below zero? Do we hear the whiff of a taper? Do we sense a sniff of panic? Is monetary policy finally an irrelevance? Oh and what happens to your currency when you pin interest rates …. quiz question, do you get more or less volatility?
ummm……
(Last night’s edition of Only Connect is available on iPlayer now!!)
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