BOJ Gov Shirakawa: Want people to respect BOJ’s independence

Author: Gerry Davies | Category: News

Good Luck with that one pumpkin :)

  • Seeking 3% inflation in Japan is unrealistic (that’s what I’ve been sayin)
  • BOJ already buying massive amount of JGBs
  • History shows importance of maintaining a central bank’s independence
  • BOJ underwriting govt debt would lead to reckless money printing
  • No central bank of advanced economies underwrites govt debt
  • Sees no need to change economic scenario in outlook report
  • Setting negative rates could discourage banks from seeking funds from BOJ in market operations
  • Japan economy still on track to recover due to expected rebound in overseas economies
  • Bond yields may spike, hurt economy if BOJ’s JGB buying is interpreted as debt monetisation
  • Japan domestic demand likely to improve as overseas economies recover
  • BOJ will continue to seek ways to revive growth but structural reforms to boost economy’s potential also important
  • Any debate on revising BOJ law must be done with caution, spending good amount of time
  • Must monitor if fallout from Japan-China tensions will worsen