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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