Central Banks
Early BOJ Shift Would Risk Return to Deflation, Ex-Deputy Warns
- Changes too soon would be ‘extremely dangerous,’ Iwata says
- Speculation high of shift under central bank’s new governor
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The Bank of Japan tweaking its yield curve control before achieving its price goal would risk pushing the world’s third-largest economy back into deflation, former Deputy Governor Kikuo Iwata said, warning the central bank’s incoming leadership against a hasty exit from stimulus.
With sustainable 2% inflation still out of reach, reviewing YCC any time soon would be “extremely dangerous,” Iwata said Sunday on an NHK program, while downplaying the side effects of prolonged easing.