BOJ could end yield curve control next spring: U.K. hedge fund

BlueBay CIO says to keep shorting JGBs, seeing more room for yields to rise

Bank of Japan Gov. Haruhiko Kuroda holds a news conference Dec. 20 after the BOJ decided to raise the cap on 10-year yields to 0.5%. (Pool photo)

YASUHA MINAMI, Nikkei staff writer

December 23, 2022 04:09 JST

TOKYO -- After Tuesday's surprise decision to widen its target band for long-term interest rates, the Bank of Japan could end its yield curve control policy altogether as early as March, said Mark Dowding, chief investment officer at BlueBay Asset Management.

With inflation running higher and the central bank already starting to pivot away from ultraloose monetary policy, Dowding expects further action before BOJ Gov. Haruhiko Kuroda departs in April.