Back
21 Apr 2014
BoJ to hold QE steady for as long as possible – ex BoJ's Suda
FXStreet (Łódź) - Former BoJ governing board member Miyako Suda said on Monday that the central bank will most likely refrain from increasing monetary stimulus for as long as possible. When it does take action however, the measures will be “extraordinary” such as massive JGB purchases.
Suda also expressed her doubts about the BoJ's ability to attain its inflation goal, as the impact of the bank's aggressive asset purchases hasn't been evaluated yet.
"The BOJ will probably maintain its bullish price forecast for as long as possible and keep policy unchanged until it becomes absolutely impossible to continue arguing that its price target can be met," Suda said in an interview for Reuters.
"But once he feels something must be done, I think Governor Kuroda will do something quite extraordinary because small steps won't work," she added.
Suda also warned that growing concerns about deflation in Europe could hurt sentiment.
Suda also expressed her doubts about the BoJ's ability to attain its inflation goal, as the impact of the bank's aggressive asset purchases hasn't been evaluated yet.
"The BOJ will probably maintain its bullish price forecast for as long as possible and keep policy unchanged until it becomes absolutely impossible to continue arguing that its price target can be met," Suda said in an interview for Reuters.
"But once he feels something must be done, I think Governor Kuroda will do something quite extraordinary because small steps won't work," she added.
Suda also warned that growing concerns about deflation in Europe could hurt sentiment.