Ueda Simplifies BOJ Policy, Ends Negative Rates and Yield Curve Control

Ueda achieved his goal of simplifying the BOJ's complex monetary stimulus framework into a simpler one
Ueda dismantled his predecessor's massive stimulus by removing forward guidance and phasing out yield curve control
The BOJ ended 8 years of negative rates and shifted away from reflating growth with decades of stimulus
Ueda now faces challenges of further rate hikes without spooking markets used to low rates
The BOJ must also reduce its huge balance sheet without causing a spike in bond yields that increases debt costs