BOJ’s Outlook Doesn’t Reflect Reality, Key Price Expert Says
- Ex-governor candidate Watanabe says BOJ’s price view is wrong
- Bank should have scrapped YCC in one go, professor says
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The Bank of Japan should stop trying to keep policy normalization speculation at bay by offering an inflation outlook that doesn’t reflect reality, according to one of the country’s leading experts on prices.
While the central bank sharply raised its price outlook last month, it was still kept too low, said Tsutomu Watanabe, an economics professor at the University of Tokyo. That move was likely due to concerns over fueling speculation that the BOJ will change its negative interest rate, he said in an interview Monday.