Is the BOJ's Rate Hike the First of Many?
Something has to give when you are adding to imbalances like this and, surely, this has an endgame when the BoJ buys the last JGB and the market sets interest rates?
Meantime the other side of sticking to YCC while the Fed tightens has been weak JPY. Apparently too weak for political society? Possible the weakness of JPY prompted the BoJ to take this action? Possible Kuroda willing to take the flak before handing over?
But does it end the pressure on JPY to weaken? After all, demographics are awful and growth potential remains ~0% even with the artificial interest rate world preserving employment.