Japan must pivot toward growth after decade of ultra-easy money

Surprise BOJ move finds government and public unprepared for a world with interest

20221220N boj building

The Bank of Japan's headquarters in Tokyo. (Photo by Yumi Kotani)

TAKESHI KAWANAMI, Editor, Financial and Market News Unit

TOKYO -- A senior Japanese Finance Ministry official involved in managing government bonds would often say that the Bank of Japan "has no choice but to take investors by surprise when it scales back monetary easing, to avoid triggering an attack by speculators."

If markets priced in a retreat from the policy, long-term interest rates could come under heavy upward pressure as traders unloaded bonds en masse.

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