Bank of Japan Gov. Haruhiko Kuroda appears as determined as ever to see out his inflation mission without buckling to market or political pressure.
Entering the final six months of his decadelong stint at the helm, Kuroda on Friday will stick with the central banking world’s last remaining negative interest rate, according to all 49 economists surveyed by Bloomberg. Also set to stay: a 0.25% cap on 10-year bond yields.
Such doggedness risks triggering a fresh downward spiral for the embattled yen and another round of currency intervention from Japanese authorities. It’s also likely to result in a further ramp up of BOJ bond purchases to keep benchmark yields in check.
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