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Central Banks

New BOJ Leaders Should Rethink Policy, Fiscal Impact, Nakao Says

  • Economists see Takehiko Nakao as a candidate to succeed Kuroda
  • Says adjustments need to be gradual, review could be internal
Takehiko Nakao
Takehiko NakaoPhotographer: Simon Dawson/Bloomberg

The Bank of Japan should review its policy with gradual adjustments in mind once the new leadership team is formed next spring, according to Takehiko Nakao, one contender to replace Governor Haruhiko Kuroda. 

After a decade of ultra-loose monetary policy, there’s been a build up of side effects including damage to the nation’s fiscal discipline, less active banks, and a much cheaper yen that may warrant a deeper look, he said.