20230120 BOJ

Bank of Japan Governor Haruhiko Kuroda, who is due to retire in April after 10 years in the job. (Nikkei montage/Reuters/Satoko Kawasaki)

Bank of Japan's communication breakdown leaves investors in dark

Like the U.S. Federal Reserve, the BOJ has trouble making itself understood

TOKYO -- Last week, the Bank of Japan demonstrated that it has at least one big thing in common with the U.S. Federal Reserve. Both central banks are having difficulty making themselves understood.

The BOJ's current round of communication troubles dates back to Dec. 20 when it allowed interest rates to go higher in a surprise move, sparking a rally in the yen and in the shares of major banks and insurers that could profit from higher yields.

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