Inaba Says BOJ Could Ease More If Government Reins in Debt
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The Bank of Japan could buy bonds more aggressively if the government commits to lowering the world’s largest public debt, said Nobuo Inaba, a former central bank official and a possible candidate to replace Governor Masaaki Shirakawa in April.
“The bank is concerned that continued massive bond purchases will lead to a worsening of the nation’s fiscal position,” Inaba said in an interview with Bloomberg on Nov. 16. “The bank could strengthen its easing and increase the impact of its policies” if the government commits to achieving fiscal health.