TOKYO -- The Bank of Japan on Tuesday raised the upper limit on the 10-year yield to 0.5%, offering the impression that it had moved to dismantle its unconventional monetary easing policies.
For Gov. Haruhiko Kuroda, whose term as governor ends in April, it must be difficult to accept the end of the nearly decadelong easing scheme and its initial success. However, the current easing mechanism has become increasingly complicated, creating a variety of problems, such as the rapid depreciation of the yen. It has also become an obstacle to gaining public understanding for gradual price increases that come with wage hikes. Kuroda should view his final task as crossing a bridge to a simple and robust monetary framework.
