The BOJ's Yield Curve Control Policy Has Come Under Pressure

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The BOJ under the incumbent Harushiko Kuroda for a decade has been carrying out very aggressive monetary easing measures to get Japan out of a long period of deflation. In December and January alone, they spent more than $300 billion trying to buy large amounts of Japanese government bonds so that they can actually maintain the cap on JGBs. Eida: He seems to suggest that there is going to be some kind of an adjustment to the current policy.

FTX affiliate Alameda has sued crypto investment company Grayscale and its owner over the structure of their large bitcoin and ethereum trusts, Chinese companies are flocking to Switzerland to raise capital, and incoming Bank of Japan governor Kazuo Ueda has hinted that ‘yield curve control’ is unlikely to survive in its existing form once he takes the helm.

Mentioned in this podcast:

FTX’s trading affiliate Alameda sues Grayscale over crypto investments

Chinese companies choose Switzerland over US and UK to raise money overseas

Ditching bond yield cap will be tricky task for new Bank of Japan governor

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