The Bank of Japan (BOJ) should adopt an inflation target range as opposed to the current pinpoint target of 2 percent, former BOJ board member Sayuri Shirai said while talking to Bloomberg earlier today.
Key quotes
BOJ should not abandon inflation targeting as that could lead to a sharp rise in JPY.
Growing view BOJ may need modern monetary accommodation.
BOJ may ease more if JPY surges, resulting in a sharp slowdown in the economy.
Lowering 10-year yield could have a negative impact on the financial system. Instead, the BOJ can expand the 10-year yield’s target range.
BOJ has little options left other than expanding the target range of the 10-year government bond yield.
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