The Bank of Japan (BOJ) should ditch the negative interest rate policy and yield curve control as such crisis-mode measures are warranted for an economy enjoying steady growth, a former central bank executive said on Monday, according to Reuters News.
Kazuo Momma, who oversaw monetary policy and international affairs during his tenure at the Bank of Japan (BOJ), believes the central bank may have a hard time normalizing its policy unless it drops its insistence of achieving the elusive 2 percent inflation target.
Key quotes (Source: Reuters)
- BOJ no longer needs to persist in hitting price goal – Momma
- BOJ’s new forward guidance “doesn’t mean much”
- Exit from easy policy may be years away
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