Bank of Japan Governor Haruhiko Kuroda changed the course of global markets when he unleashed a $3.4 trillion firehose of Japanese cash on the investment world. Now, Kazuo Ueda is likely to dismantle his legacy and set the stage for a reversal of the tide that risks sending shockwaves through the global economy.
A little over a week before a significant leadership change at the BOJ, investors are bracing for the seemingly inevitable end to a decade of ultra-low interest rates that has punished domestic savers and sent a wall of money abroad. The exodus accelerated after Kuroda began depressing bond yields in 2016, culminating in a mountain of offshore investments that accounted for more than two-thirds of Japan’s economy.
Comments are closed.