Ex-BoJ’s Shirai: BOJ stimulus exit made hard by Abe's election win - RTRS
Former BOJ board member Sayuri Shirai told Reuters on Friday, Japan’s PM Abe’s win in the general election last month will make it difficult for the Bank of Japan (BoJ) to exit its monetary stimulus next year.
“When the economy is in good shape like now, the BOJ needs to normalize monetary policy so it has the tools available to fight the next recession.”
“But the election result has made that difficult.”
“The BOJ probably wants to slow its asset purchases. But that may be difficult because the government puts a high priority on keeping stock prices high and the yen weak.”
“There’s a pretty high chance Kuroda will be reappointed.”
“The positive effect of the BOJ’s policy is limited, but it would be hard for Kuroda to change it.”