Former Bank of Japan board member Shirai out on Bloomberg 1 June 2016
- not much choice but to keep negative rate policy now
- not completely against neg rates
Shirai left the BOJ on 31 March having served for 5 years and generally voted with Kuroda but was one of 4 dissenters on neg rate introduction in Jan
- neg rates should have been introduced at time of tapering
- BOJ should not give up on 2% inflation target but hard to see them achieving it in foreseeable future
Ironic that after leaving she highlighted the need for BOJ to communicate its policy better.
"Before taking any more action, it's important for the BOJ to make strong efforts to let the Japanese people know what they are doing. Without doing this, the impact of any policy will be diminished."
As Eamonn pointed out in his sales tax post the decision was probably the most telegraphed yet albeit with PM Abe, and others, in constant denial.
Meanwhile USDJPY still little changed at 110.57 with Nikkei -0.7% at 17114.77
Shirai - Poor timing by the BOJ
