Kuroda’s Easing ‘Incomprehensible’ to Ex-BOJ Chief Economist
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Prime Minister Shinzo Abe has tied the Bank of Japan’s hands with a delay in a sales-tax increase that’s hurt confidence in the nation’s finances, a former chief economist at the central bank said.
Damaged trust in Abe’s pledge to cut the deficit will make it “extremely difficult” for the BOJ to exit record stimulus without risking a bond yield surge, Hideo Hayakawa said in an interview yesterday. More easing would also be tough because Governor Haruhiko Kuroda effectively has made fiscal improvement a premise for further monetary stimulus, he said.