More Easing Won't Help Japan Much, Ex-Currency Official Says
- Shinohara says stock declines a result of outside factors
- Central bank to decide on policy moves at meeting this week
Matter of Time Before BOJ Makes Move?
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Even if the Bank of Japan adds to already record stimulus at this week’s meeting, the impact may be limited compared with its previous monetary expansion, warns Naoyuki Shinohara, a former high-ranking currency official at Japan’s Finance Ministry.
“Additional monetary easing may have some impact on the stock and currency markets, but it will probably be difficult to have the similar effects that the first and second bazooka provided,” said Shinohara, who worked at the MOF’s international bureau in 2001 when BOJ Governor Haruhiko Kuroda was the top currency official there. In the short run, more fiscal spending is the only option for supporting the economy, he said.