Comments from former BOJ chief economists Hideo Hayakawa
- BOJ should add stimulus next week
- Should end 'lie' about achieving its inflation target in a time frame that is repeatedly missed
- Should end 'lie' about having unlimited policy space. He said the BOJ only has so many bonds it can buy and must admit it will have to taper
He spoke with Bloomberg.
The chances of those two things are low. The BOJ has missed every target for hitting 2% inflation it has set but Kuroda said recently that the target is important to show the BOJ's strong commitment. Shifting the rhetoric on limits could also create some unwanted confusion in markets and potentially strengthen the yen.