The Bank of Japan is likely to adjust its control of yields as soon as this summer due to concerns about a weak yen and public discontent over inflation, according to a former BOJ executive director.
The view sharply contrasts with the stated position of Gov. Haruhiko Kuroda, who has repeatedly said he will stick with stimulus even as the Federal Reserve and other central banks raise interest rates to tackle inflation. A string of unprecedented bond market interventions backed up his remarks last week.
"They can’t keep doing this for that long,” Hideo Hayakawa, a former director at the bank, said in an interview. "Market participants seem to think the BOJ won’t budge because Gov. Kuroda sounds very firm but I don’t think that’s the case.”
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