BOJ Governor Faces Dilemma on Policy as Yields Rise, Yen Weakens, and Inflation Picks Up
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BOJ Governor Ueda faces tough choices on policy with yields near ceiling, yen near multi-decade lows, and inflation above target.
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Raising yield curve control ceiling could ease yen weakness but undermine stimulus just as inflation nears 2% goal.
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Standing pat risks speculative attack on yields, further yen declines, and more bond buying to defend policy.
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Changing policy signals could invite yield spikes beyond economic fundamentals, jeopardizing inflation target.
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Most economists see no major policy changes at this week's meeting, but markets betting on adjustments to yield curve control.