Former Dep BOJ Governor Nakaso: Global policies to remain looser for longer
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- Leverage build up across world getting to high levels.
- China is a particular strong example of this.
- Leverage is building up in China again after the deleveraging.
- Collateralized loan obligations (CLO) is reminiscent of the run up to the subprime loan crisis.
- Global central banks reverting back to accommodation.
- Policies likely to remain accommodative for longer.
- Renewed accommodation is good in the short-term, but could be negative in the longer term due to more risk.
argued former Bank of Japan Deputy Governor, Nakaso.
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