Former BOJ Deputy Governor Kazumasa Iwata via Reuters
- BOJ should proceed with current slowdown in JGB buying so annual pace of buying eventually falls to 40 trln yen from 80 trln yen
- BOJ should consider reducing ETF purchases at some point given distortions it is creating in markets
- BOJ should modify its long-term interest rate target once it becomes clear inflation will stay around 1 pct
- BOJ's inflation forecasts are too optimistic, even hitting 1 pct inflation could be challenging
- BOJ should conduct new comprehensive assessment on effect of its stimulus policy
Even though he is ex of the BOJ his opinion still counts in Japan, And I suspect he will be proven correct on that first point - in fact the BOJ is buying JGBs at a pace well below the 80tln target - its all about YCC now and they haven't needed to buy so many.
