Last quote by Sayuri Shirai
Sayuri Shirai quotes
It's going to be much harder for BOJ to continue this asset purchase program unless the BOJ pays very high prices and then that would undermine the BOJ's balance sheet.
I don't think negative interest rates will contribute to increasing aggregate demand and also increasing inflation expectations. But if Mr. Kuroda has to show some action in order to admit that it takes longer for them to achieve 2 percent, I think negative interest rate is one of only a few remaining options. Because comparing to additional QE, negative interest rate policy has less side effect.
Also, at this moment, the yield curve is very flat. So if the yield curve is too flat then what would happen to the lending rate or bond prices? Those would not reflect the appropriate prices any longer.
Monetary policy has done more than enough. I can't see why the BOJ needs to ease more when the effects of its existing steps are distorting the yield curve.