For some context, Ito is also being touted as a possible successor to Kuroda in top BOJ positions, having previously worked closely with Kuroda at Japan’s finance ministry and also being Kuroda’s inspiration for the 2% rate. inflation target in Japan. In his opinion, he praised the central bank’s efforts to correct the market’s performance after adjusting its curve-shifting policy last week: „Kuroda is right on this technical point. But the YCC adjustment could still be the first step towards monetary . political normalization. If so, it should herald a sign that the BOJ has had some success with a decade of ultra-easy monetary policy. The Kuroda Bazooka, as it is commonly known, may have hit its mark. Kuroda Bazooka Ito further states that ” next year’s 'spring raid’ – the annual wage negotiations is expected to bring big pay rises, partly to balance higher inflation in 2022″. Such a scenario, he adds, would be „an ideal precondition for the BOJ to start achieving its inflation target on a more sustainable basis” and „would bring a happy end to Japan’s decades of ultra-easy monetary policy”. The entire message can be found here.

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