Recapping the Bank of Japan Summary document published today – call for YCC change

<p>Earlier posts on this are here, read from the bottom up for the chronology:</p><ul><li><a href="https://www.forexlive.com/centralbank/heads-up-folks-the-july-27-28-bank-of-japan-meeting-is-going-to-be-huge-ycc-pivot-20230626/" target="_self" rel="follow">Heads up folks, the July (27, 28) Bank of Japan meeting is going to be huge – YCC pivot</a></li><li><a href="https://www.forexlive.com/centralbank/more-from-the-boj-june-meeting-summary-one-member-called-for-early-revision-of-ycc-policy-20230626/" target="_self" rel="follow">More from the BOJ June meeting summary: One member called for early revision of YCC policy</a></li><li><a href="https://www.forexlive.com/centralbank/usdjpy-lower-after-the-boj-says-cpi-may-not-drop-below-2-20230626/" target="_self" rel="follow">USD/JPY lower after the BOJ says CPI may not drop below 2%</a></li><li><a href="https://www.forexlive.com/centralbank/boj-says-strong-chance-cpi-will-moderate-but-not-to-back-below-2-by-mid-fiscal-year-20230626/" target="_self" rel="follow">BOJ says strong chance CPI will moderate, but not to back below 2% by mid fiscal year</a></li></ul><p>Asia media have a recap posted, link <a href="https://www.channelnewsasia.com/business/boj-member-called-early-tweak-ycc-yen-worries-resurface-3586446" target="_blank" rel="nofollow">here </a>if you'd like to read details. In summary:</p><ul><li>A Bank of Japan (BOJ) policymaker called for an early revision to its yield curve control<ul><li>a revision to the treatment of YCC should be discussed at an early stage, taking into account the need to prevent sharp fluctuations in interest rates in the future phase of an exit from current monetary policy, the member said</li></ul></li><li>
It was the first time the BOJ summary showed a board member explicitly mentioning the need for an early debate of a tweak to YCC</li><li>"Although one member called for change in YCC, we need to see if others including Ueda may follow suit, which would make it a big movement," said Daisaku Ueno, chief currency strategist at MItsubishi UFJ Morgan Stanley Securities.</li></ul><p><a href="https://www.forexlive.com/terms/j/jpy/">jpy</a></p>

This article was written by Eamonn Sheridan at www.forexlive.com.