Japan’s Central Bank Tweaks Message as Dissenter Calls for More Easing

Kuroda speech included new language on risks of more stimulus
Changes are said to have been wrongly interpreted as exit hint

Pedestrians cross a road in front of the Bank of Japan (BOJ) headquarters in Tokyo, Japan, on Tuesday, Oct. 31, 2017. The BOJ left its massive monetary stimulus program unchanged even as it trimmed its inflation forecasts, signaling further divergence ahead from its global peers.Photographer: Kiyoshi Ota/Bloomberg

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By Toru Fujioka and Masahiro Hidaka

December 15, 2017 at 2:46 AM UTC

Updated on

December 15, 2017 at 6:22 AM UTC

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A new dissenter on the Bank of Japan board calling for more stimulus has prompted the BOJ to adjust its communications to flag risks of additional easing, according to people familiar with the central bank’s discussions.

The change in messaging could explain why some investors wrongly interpreted Governor Haruhiko Kuroda’s recent comments on the "reversal rate" theory as a hint about an earlier policy exit, said the people, who asked not to be named because the discussions are private.