Exit with care, investors remind central banks

London

GLOBAL central banks are being served a sharp reminder by investors that their monetary policy planning carries the potential to roil financial markets in 2018.

A minor tweak in the Bank of Japan's (BOJ) bond-purchase operation on Tuesday saw the yen strengthen more than one per cent in two days. A change in the way that China's central bank manages the yuan sparked losses in that currency while recent hawkish comments from European Central Bank (ECB) officials nudged the euro higher.

The lesson, almost five years since the Federal Reserve spar…