The Bank of Japan’s policy review will likely center on flexible stock-fund buying, bond yield movements and the potency of negative rates as the central bank looks for ways to make tools designed for a shorter time span function more effectively over the long haul.
Gov. Haruhiko Kuroda has repeatedly said in a flurry of appearances in parliament, including sessions on Wednesday, that the central bank is seeking to make its yield curve control framework more effective by fine tuning it rather than overhauling it at its March 18-19 meeting.
Still, the undertaking of a review suggests more than superficial tweaks are in the pipeline as the BOJ looks for a further evolution of its approach.