If the multiverse of Academy Award sensation ¡°Everything Everywhere All at Once¡± exists, then in some alternate reality this scenario unfolded last week: Just as some traders feared, the Bank of Japan announces a surprise move to dismantle yield-curve control ¡ª on the same day as Silicon Valley Bank implodes.
Had Gov, Haruhiko Kuroda taken such a step, it would have compressed into a single weekend the mistakes of predecessors who raised rates at the wrong time. His comparatively tiny tweak in December roiled global markets for weeks; a surprise hawkish turn, just as SVB collapsed, would unleash chaos.
Fortunately, we live in this universe ¡ª one where Kuroda has exercised considerable prudence over tightening policy, despite the insistence from largely overseas investors that he abandon yield-curve control and join the global cycle.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.