BOJ's Kuroda: Government and central bank must closely communicate on policy

Author: Justin Low | Category: Central Banks

Further comments by BOJ governor, Haruhiko Kuroda

BOJ Kuroda
  • Doesn't think MMT is appropriate to be applied in Japan
  • Says unlimited debt monetisation by a central bank will lead to hyper-inflation
He also notes that when the BOJ communicates that low rates will be kept for an 'extended period of time', he means that they are thinking of 'quite a long time'.

His earlier comments suggest that it will extend to beyond the spring of 2020 but given the way things are going, it won't even happen past that - just as we discussed last year (just copy and paste the timeline for 2020 and you'll be up to speed with the BOJ).

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