The case for abandoning Yield Curve Control (YCC) has weakened further. The recent troubles at US regional banks and Credit Suisse should further reduce already easing pressure on the 10-year JGB yield ceiling, and data show the economy is weakening rapidly. But YCC remains an unsustainable policy and the Bank of Japan will have to end it eventually. We still think this will happen at incoming Governor Ueda’s first meeting in April.
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