As reported by Bloomberg, an ex-Bank of Japan (BoJ) official said that the Yen could reach 100.00 against the US Dollar in fairly short order, and Japan has few policy tools remaining that would allow them to counter the effects effectively.
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While that level would be tolerable, there is little the depleted BOJ can do about further yen strength or a serious downturn in the economy, Kazuo Momma, former executive director of the central bank, said in an interview with Bloomberg Tuesday. “However bad Japan’s economy gets, the BOJ can’t add stimulus anymore,” Momma said.
With little else the central bank can do, BOJ Governor Haruhiko Kuroda and his fellow policy makers will remain observers for much of this year, Momma said. If the economy needs help, it’s time for the government to step up with additional fiscal spending, he said.
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