The Bank of Japan is leaning toward monitoring the impact of recent tweaks to its stimulus program rather than making another adjustment at Governor Haruhiko Kuroda’s final policy meeting next week, according to people familiar with the matter.
(Bloomberg) — The Bank of Japan is leaning toward monitoring the impact of recent tweaks to its stimulus program rather than making another adjustment at Governor Haruhiko Kuroda’s final policy meeting next week, according to people familiar with the matter.
While BOJ officials continue to see distortion in the shape of Japan’s yield curve, the central bank still needs time to look at the impact of various measures since December that adjust its control of yields, the people said.
The final policy decision will be made only after assessing the latest data and every piece of available information related to policy ahead of the gathering’s conclusion on March 10, they said.
After the two deputy governors step down on March 19, veteran economics professor Kazuo Ueda is expected to succeed Kuroda on April 9.
Read More: BOJ Watchers Flag Outside Risk of March Surprise to Help Ueda
Some economists have flagged an outside risk of another tweak to the BOJ’s yield curve control program at the March meeting. Given continued speculation over policy adjustments, a change now may help Ueda start in a calmer environment and with better functioning markets, the economists have argued.
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