Former executive director in charge of monetary policy during the pandemic (and also once head economist at the Bank) Eiji Maeda says the Bank of Japan will trim back measures within 6 months of getting a new Gorvenor in April.
Maeda spoke with Bloomberg:
- “It’s more likely than not that the BOJ will take steps within the first six months of a new governorship”
- “Still, even if YCC and the negative interest rate come to an end, the bank will probably continue with monetary easing” to keep rates low
“Mild inflation is starting to take root”
“An economic cycle where inflation pushes up wages may be starting to emerge.”