Bank of Japan watchers are flagging the outside risk that Gov. Haruhiko Kuroda may surprise international markets one last time next month with adjustments to smooth the transition process for his nominated successor, Kazuo Ueda.
The central bank’s yield curve control program already presents a complicated challenge for Ueda. As soon as he takes the BOJ’s helm, the nominee will likely face intense market pressure for change, even if he may prefer to take time to carefully assess the past decade’s extraordinary stimulus measures as an economist.
That’s why some BOJ watchers warn there’s a risk of a surprise at Kuroda’s final meeting ending March 10, even as most economists see action coming after Ueda takes the helm.