Bank of Japan Member Suggests Limiting QE to 2 Years

One member of the Bank of Japan’s policy board said limiting quantitative easing to two years could help stabilize the bond market as the central bank’s communications about its monetary policy may actually be increasing JGB volatility, minutes from its May 21-22 meeting showed on Friday.

The member, most likely Takahide Kiuchi, also said that because it is difficult to meet 2 percent inflation in two years, the BOJ should limit quantitative easing to avoid financial imbalances, the minutes showed.

Kiuchi’s lone voice of dissent lacks the support of other central bankers for now but could spark concerns that divisions could grow as the BOJ’s expanded monetary easing has unintentionally caused bond yields to rise.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza