BOJ May Get More Policy Freedom If Abe Quits: Ex-BOJ Kiuchi
- Could let BOJ make 2% inflation target less binding: Kiuchi
- If Abe isn’t premier, political pressure may decrease, he says
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The Bank of Japan will likely find it easier to make its inflation target less binding if recent scandals throw Prime Minister Shinzo Abe from power, according to Takahide Kiuchi, a former board member at the central bank.
“If the unusually strong administration changes, the Bank of Japan could get a little more freedom,” Kiuchi said in an interview Tuesday. The BOJ has faced “considerable political pressure” these past five years, he said.