GBPJPY another tweak

The BoJ is unlikely to tighten interest rates anytime soon, but there is speculation that it could tweak its yield curve control (YCC) policy as early as July. Governor Ueda sidestepped a question about YCC after the meeting, saying that the central bank would have to balance the "merits and demerits of the policy. In December, the BoJ shocked the markets when it tweaked YCC and widened the cap on 10-year government bonds from 0.25% to 0.50%, which sent the yen sharply higher. With the yen trading near 7-month lows, another tweak is a reasonable possibility.