BOJ's Kiuchi says there are limits to what monetary policy can do on its own

23 June 2016, 08:06
Sherif Hasan
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BOJ board member Kiuchi speaking to reporters 23 June 2016

  • lower borrowing costs from neg rates aren't leading much to increase in bank lending

Another central banker who foolishly believes that cheap money will be lent by banks rather than shoring up their defences.

  • scrapping neg rates will help alleviate concerns over banks profits
  • targeting 2% inflation to be achieved in near future lacks feasibility
  • BOJ market communications have worsened with neg rates
  • mon pol uncertainty increased since neg rates
  • BOJ doesn't have any policy left with large effects
  • inappropriate mon pol may indirectly weaken Japan's productivity, potential growth

Seems like our man Kiuchi has a bit of a gripe going on with neg rates and his governor.

  • BOJ and other central banks in close contact for any Brexit fallout
  • must provide ample liquidity in case of turmoil

Meanwhile USDJPY still kicking around 104.65 with Nikkei up 0.79% at 16193.41 after highs of 16202.10

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