Economics
BOJ Has Hit Normalization Limit Under Kuroda, Ex-Official Says
- Hayakawa says flexible ETF buys bank have solved main headache
- Says Kuroda would need to admit policy miss to normalize more
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The Bank of Japan has done everything it can to normalize policy under Governor Haruhiko Kuroda’s watch and is now set to ride out the rest of his term without any major changes, according to a former senior central bank official.
“The BOJ has reached the end of the line on normalization for now,” said Hideo Hayakawa, referring to a series of tweaks to the central bank’s stimulus framework in March that enabled it to cut back its asset buying.