The yen hit a 2-and-a-half-year low versus the dollar and Japanese stocks jumped up to 4 percent on Wednesday on expectations that the early departure of Shirakawa, who analysts say did not share the government’s view that the BOJ is responsible for ending deflation, will bring forward a shift in monetary policy.
Up until now, markets were not expecting much action from the central bank until after Shirakawa’s term ended in April and were also left a little disappointed after the BOJ said last month it would only start making large-scale asset purchases from the start of next year when its current program ends.
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