Forex Flash: Kuroda has been critical of BoJ since early 2000´s - Nomura

Nomura Strategist Yujiro Goto notes that BoJ Governor favourite Haruhiko Kuroda has been sayiing that BOJ monetary easing has been too little and too late since the early 2000´s.

Thus, he feels that pending his appointment, the BoJ will be lead by one of its fiercest critics. Goto comments that Kuroda emphasises the importance of ´unlimited´ asset purchases to achieve the 2% inflation target and thus, he feels that the BOJ may start open-ended/unlimited asset purchases earlier than currently scheduled (2014).

Further, he feels that the Bank´s communication policy may change again under Mr. Kuroda. At the same time, Mr. Kuroda has been negative on the foreign bond-buying operation by the BOJ, even though the MOF intervened in the FX market when he headed the MOF‟s international affairs department. He writes, “The BOJ may not embark on a foreign bond-buying operation in the near future and the BOJ‟s balance sheet expansion will focus on domestic asset purchases. The BOJ‟s foreign bond-buying possibility has already decreased significantly since the G7 statement and thus this may not be a negative surprise to the market.”