- Is that somewhat of a hint to markets?
- Specific monetary policy tools are up to the BOJ to decide
- That includes yield curve control, negative rates, ETF purchases
- Will appoint next BOJ governor at the end of Kuroda’s term on 8 April
- Decision on next BOJ governor will be made while watching future economic trends
- Premature to talk about revision to joint statement between BOJ and government, since next BOJ governor has not been decided
If they were adamant about maintaining the current policy stance, it will not be surprising to see Japanese officials come out to say that nothing will change even with the new BOJ governor. Instead, we are hearing this sort of “I don’t know” talk and that’s arguably a hint to markets that there is a shift in thinking in the background surely.