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Economy

BOJ faces increasing risks as monetary easing drags on

Economic and political pressure to end the controversial ultra-easy policy looms

The BOJ faces the possibility of a "negative spread" in its rate-hike phase.   © Reuters

TOKYO -- While the Federal Reserve is entering the final phase of its exit strategy, there is no end in sight for the BOJ's massive monetary easing policy, which has seen nothing but expansion during Gov. Haruhiko Kuroda's term.

But with Japan's economic sentiment clearly recovered, concerns are now mounting over the policy's longevity. In addition, the BOJ may face political pressure to curtail its monetary stimulus, and even give up on reappointing Kuroda, if Tokyo Gov. Yuriko Koike's new party wins the general election on Oct. 22.

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