BOJ may revert to fuzzy communication after Fed-style clarity on rates
* BOJ chief, deputy gave unusually explicit signals of Friday's hike * Pre-announcement likely intended to avoid surprise * Uncertainty over Japan's neutral rate to keep BOJ cautious * Soft consumption, Trump risk complicate BOJ's rate-hike path By Leika Kihara TOKYO, Jan 27 - The Bank of Japan, after clearly signalling last week's interest rate hike, may return to its accustomed fuzzy guidance about central bank policy to maintain flexibility when it eventually begins to consider how much tightening is enough. COSTS OF CLARITY Ueda and his deputy Ryozo Himino each said during the week before Friday's hike that the BOJ board would "debate whether to raise rates" - effectively pre-announcing its decision to double short-term rates to 0.5%. Asked about the advance warnings, Ueda said after Friday's decision they were simply a "reminder" that the board would discuss the feasibility of changing policy at every rate review. "It raises some alarm bells," a former policymaker said of the BOJ's communication about Friday's rate hike.
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