BoJ: Kuroda has a task in his hand already - Nomura
|In view of Takahide Kiuchi, Executive Economist at Nomura, the biggest challenge facing BOJ Governor Haruhiko Kuroda in his second term will be to avoid a sudden emergence of the various side effects that have been created by the unprecedentedly loose monetary policies implemented by the BOJ during his first term, while also gradually reducing those side effects.
Key Quotes
“Kuroda’s reappointment most likely eliminates the possibility of the BOJ needlessly adopting additional monetary easing measures under the current economic and financial conditions in Japan. Kuroda’s reappointment despite his failure to achieve the 2% price stability target that has been the pillar of his monetary policy management likely indicates that early achievement of that target was not really considered all that important by the Abe administration. Accordingly, I believe it should be easier for Kuroda to adopt a more flexible stance on the 2% target during his second term and move toward monetary policy normalization.”
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