ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

Bank of Japan's Kuroda needs to show he is still in charge

Leaving reforms to Shinzo Abe risks letting economy languish

| Japan
Kuroda forgot that central banking is largely an expectations game. (Photo by Arisa Moriyama)

In standing still and not cutting interest rates last week, the Bank of Japan sent a message to markets: you are on your own. The memo, though, was really intended for Prime Minister Shinzo Abe.

BOJ Governor Haruhiko Kuroda's inaction effectively confirmed that the BOJ's "bazooka" -- its powerful jolts of monetary stimulus -- is out of ammunition in the conventional sense. He has already cornered the government bond market, boosted stocks through exchange-traded fund purchases and driven the yen down by as much as 30%.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more