Central Banks

BOJ Should Eye Exit Steps While Holding Policy, Ex-Official Says

  • Okina says central bank shouldn’t tweak policy due to weak yen
  • 2% inflation target shouldn’t only be about prices, she adds
Yuri OkinaPhotographer: Noriko Hayashi/Bloomberg
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The Bank of Japan should avoid raising interest rates for now while preparing for an eventual normalization of policy, according to a former BOJ official seen as a possible candidate for deputy governor.

“This isn’t the time for a drastic rate hike, so there is a limit on what the BOJ can do now,” Yuri Okina, the former official and the chair of Japan Research Institute, said in an interview.