Central Banks
World's Only Negative-Rate Holdout May Stop by Year-End, Ex-BOJ Board Member Says
- Sakurai says negative rates could be scrapped before YCC tweak
- Ex-board member known for giving consensus view under Kuroda
The Bank of Japan in Tokyo.
Photographer: Kentaro Takahashi/BloombergThis article is for subscribers only.
The Bank of Japan may scrap negative interest rates by the end of this year to adjust the currently excessive level of monetary easing, according to a former BOJ board member.
“They could do it at any time and it won’t be a surprise, given the current economic recovery,” ex-board member Makoto Sakurai said in an interview Wednesday, explaining that real interest rates have fallen significantly. Under Governor Kazuo Ueda “the BOJ has appeared cautious, but they have steadily taken policy actions at a faster pace than expected,” Sakurai said.