Kiuochi: The Bank of Japan is already putting an end to its big stimulus program

4 Sep 2017 04:30 PM

 Takahide Kiuchi, a former Bank of Japan member, made the following remarks:
•    The Bank of Japan is likely to continue the process of ending the stimulus program.
•    The Bank of Japan may also consider changing long-term interest rates soon.
•    The Bank of Japan has begun to normalize its monetary policy since it turned into a policy of controlling the yield curve last year, apparently the direction the bank will take.
•    Current bond purchases are likely to reach limit levels by mid-2018.
•    Targeting 3-5 year JGB instead of 10-years bonds may be an option for the Bank of Japan were normalizing its monetary policy.
•    The Bank of Japan may abandon its policy of controlling the yield curve and increasing bond purchases to finance the fiscal spending of the economy, which is suffering a sharp contraction.
•    With inflation still weak despite the massive easing policy that has persisted for years, BOJ could redefine the inflation target to be more flexible and aimed at a longer time frame.

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