BOJ stuck between a rock and a hard place – Goldman Sachs

Jonathan Xiong, head of the Fixed Income Alternatives Group at Goldman Sachs Asset Management, expects the BOJ to maintain the yield curve control (YCC) policy framework for a long period of time.

BOJ’s 2-day monetary policy review meeting concludes on Friday, with the central bank widely expected to keep the policy steady, while reassuring markets that stimulus withdrawal is still far away.

Key Quotes via Reuters:

"They are stuck between a rock and a hard place because they can't let (YCC) go, but it's not really having an impact"

"At some point in time, that's going to be challenged - the efficacy of the policy, what impact it is having on the underlying fundamentals," responding to whether the YCC effect was worth the cost of maintaining a huge balance sheet.