REUTERS/Fred Prouser
- Japan needs to be mindful of its yield curve control exit, Mohamed El-Erian wrote in Bloomberg.
- A disorderly exit would create volatility in world markets, and add to risks of a
"financial accident." - But Japan needs to accelerate the phase-out, the top economist added.
Japan's central bank should be mindful of how it ends the country's yield curve control policy, as any mismanagement could roil global markets, economist Mohamed El-Erian wrote for Bloomberg.
The Bank of Japan has used YCC to keep yields at specific levels, putting it at odds with much more hawkish peers around world that have been aggressively hiking rates.