💴<JPY=>: Lower JPY Could Push The BoJ to Adjust YCC Policy: J.P. Morgan

Weaker yen could be the catalyst for the BoJ to tweak its yield curve control as the bank is forced to respond to a changing environment. Weak JPY increases inflation pressures, so the Bank of Japan could steepen the yield curve. The economy, financial market conditions, and the broader environment has changed over the past years while the BoJ's policy has remained unchanged. Rather than forcing a 10-year yield cap, the YCC will likely be where the central bank adjusts policy first. - J.P. Morgan Research