Insight: BOJ's Decision to Make a Bold Shift Amid Escalating Yen Risks

The Bank of Japan’s surprise decision last week to raise a cap on interest rates was partly driven by policymakers’ growing worries ultra-loose monetary settings would spark a repeat of the bruising yen selloff that the economy saw last year.

The tweak to the BOJ’s bond yield curve control (YCC) was the result of brainstorming sessions that came to a head in May, say sources familiar with the decision, just over a month after Kazuo Ueda succeeded his dovish predecessor Haruhiko Kuroda as the bank’s chief.

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