ArrowArtboardCreated with Sketch.Title ChevronCrossEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Economy

Economic adviser to Japan's Abe sees room for more easing

TOKYO -- The Bank of Japan has ample leeway to loosen monetary policy further, a member of Prime Minister Shinzo Abe's economic brain trust said Wednesday, arguing that the central bank should act to counter the yen's "speculative" appreciation.

"Additional easing such as deepening negative rates or expanding Japanese government bond purchases is a possibility, though I don't know if it'll come at the September meeting or in October or later," Koichi Hamada, a professor emeritus of economics at Yale University, told The Nikkei. The BOJ's policy board will meet Sept. 20-21 to assess the impact of its easing program and to discuss whether further steps are needed.

Some argue that the central bank's massive JGB-buying scheme has a shelf life of only another year or two. If the BOJ pays heed to this argument, then it "should buy foreign bonds for which there's a large amount outstanding," Hamada said. "That should also weaken the yen."

Koichi Hamada

The central bank is legally barred from buying foreign debt for currency intervention purposes. "The relevant authorities should put their heads together and consider such measures as revising the law, or build international political consensus," Hamada argued.

Hamada also urged "appropriate" yen-selling by the Japanese government to curb a flood of buying by speculators, which he blamed for the currency's rapid appreciation since the BOJ announced its negative rate policy in January.

(Nikkei)

Sponsored Content

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

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media