An outspoken leader of a Japanese business lobby said on Thursday the central bank should unwind its easing programmes to live with interest rates although it may take a year to exit monetary stimulus.
Takeshi Niinami, chairman of Keizai Doyukai, who also heads Suntory Holdings Ltd, said the Bank of Japan “must normalise” monetary policy so that it could help weed out incompetent firms and facilitate labour turnover towards growth industries.
“The BOJ must make a move,”
“There must be quite a lot of political reservation about completely abandoning them,”
“That’s why the BOJ may be thinking it would be better off falling behind the curve.”
“That should be taken as a message that the BOJ is leaving the YCC behind gradually,”
“If it’s unwound all at once that would cause ripple effects though.”