Ex-Japan MOF Watanabe: BOJ should start reducing its annual bond-purchase target later this year

Dhwani Mehta FXStreet

President of the Institute for International Monetary Affairs in Tokyo and Former Japanese Ministry of Finance (MOF) Currency Chief, Hiroshi Watanabe, crossed the wires earlier on the day, via Bloomberg, citing:

Japanese economy has recovered enough for BOJ to begin to cut back on its stimulus policy

Should start to reduce its annual bond-purchase target later this year

"Just as an endless intravenous drip becomes ineffective, monetary policy should be changed to reduce stimulus once the economy is no longer facing any headwinds"

"This would create a buffer for future needs. There is absolutely no reason to deter such a decision by saying we have to wait for inflation to reach 2 percent"

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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