TOKYO -- The Bank of Japan has set out to unwind its decadelong ultra-easing program, putting Japanese government bonds at the gradual risk of a downgrade. If interest rates rise as a result of the BOJ abandoning its yield-curve control (YCC), concerns about the country's public finances would intensify, eventually affecting Japanese banks' ability to acquire foreign currency and Japanese companies from further expanding overseas.
Bank of Japan
BOJ unwinding stokes fears of government-bond downgrade
The Kuroda shock: Japan megabanks risk loss of dollar funding channels
BOJ Gov. Haruhiko Kuroda said on Monday that last week's decision was intended to enhance the effect of its ultra-easy policy, rather than a first step towards withdrawing its massive stimulus programme.(Nikkei montage/Reuters/Karina Nooka/Rie Ishii)
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