Salient to Investors:
Professor Koichi Hamada said the BOJ’s efforts to end decades of deflation are very weak, as is its policy of buying short-term government bonds. Instead it could buy foreign bonds and debt with longer maturities, and increase purchases of REITs and ETFs. Any inflationary concerns could be eased by raising interest rates. Hamada said the BOJ should ease until inflation of 2 percent or 3 percent is reached – no problem if opposition leader Shinzo Abe wins national elections this month and appoints a more aggressive central-bank chief.
Yoichi Takahashi said what Abe says now as the head of an opposition party is irrelevant – he won’t say these things if he becomes prime minister.