Japan’s Ex-MoF Nakao: BoJ should alter current easing policy framework as side effects mount

Japan’s former Top Currency Diplomat Takehiko Nakao said on Tuesday, the Bank of Japan (BoJ) should alter current easing policy framework as side effects mount.

Additional quotes

BoJ’s latest moves 'good', seen as effort to reduce burden on next governor in unwinding monetary stimulus.

Excessive yen strength troublesome, excessive yen weakness bad.

2% inflation target as stipulated in government-BoJ accord may be making monetary policy inflexible.

Yen strengthening may be tolerated to a degree if caused by raising interest rates.

Market reaction

These comments fail to offer any respite to the Japanese Yen, as USD/JPY recaptures the 133.00 barrier. The pair is trading at 133.10, advancing 0.18% on the day.