Takehiko Nakao, Japan’s former Top Currency Diplomat and a potential successor to Bank of Japan (BoJ) Governor Haruhiko Kuroda, spoke to Reuters on Wednesday about an easier transition away from the central bank’s ultra-loose monetary policy.
“The BOJ has not accomplished so much in increasing inflation expectations and pushing down real interest rates while side-effects became larger.
“I was thinking that the current structure would have to be changed sooner or later.”
“I am not sure why the recent step was taken, but it may have the effect of easing the burden on whoever succeeds Kuroda in terms of all the negative shocks resulting from revisions.”
“It was beneficial in that it decreased the burdens of initiating policy adjustments.” “There is no reason to believe that a recession is imminent.”
