A piece argues that the BOJ is backing away from surprising markets with announcements
It says that when Kuroda first arrived the tactic of big surprises worked toward achieving policy goals: stocks jumped, the yen weakened
But in January the announcement of negative rates backfired for the bank (those of us who were around noted not just the announcment was a surprise but that prior speeches from Kuroda were actually misleading, this was the bigger problem)
Says Bloomberg now:
- The Bank of Japan is ditching the tactic under Governor Haruhiko Kuroda of surprising markets with its monetary decisions.
That's the conclusion of BOJ watchers sifting through speeches and media appearances with Kuroda and other officials in recent weeks, which have offered far greater insight into the central bank's thinking than previously in the governor's term. - "The BOJ communication strategy has totally changed in the past several weeks," said Kanno, who used to work at the BOJ. "They don't want to surprise the market anymore."
Link is here for more
