Former Deputy Governor of the Bank of Japan, Hiroshi Nakaso (pictured right), thinks the bank will likely modify or end its policy of controlling bond yields. Nikkei newspaper quoted him in an interview published Sunday.
While commenting on Japan's yield curve control (YCC), Nakaso added that the move would be prompted by growing side effects, such as a hit to financial institutions' profits.
"The increasing side-effects are a sign the policy effect is working its way through the economy," he said. "When the appropriate timing comes, the BOJ's new leadership will likely modify or abolish YCC."
