BoJ Dep, Governor candidate Shirai calls for more policy flexibility

Former Bank of Japan (BoJ) board member and the central bank’s Deputy Governor candidate Sayuri Shirai urged the BoJ to adjust interest rates more flexibly in response to cyclical economic swings.

Additional quotes

“The Bank of Japan must thoroughly examine its stimulus programme.”

“With Japan's economy lacking momentum, the BOJ will likely need to keep interest rates ultra-low even after the term of dovish Governor Haruhiko Kuroda ends in April.”

"The most important thing the BOJ's new leadership must do is to clarify and simplify its policy communication.”

"The BOJ must take steps to enhance the flexibility of monetary policy. Any steps it takes for this purpose would be different from sharp interest rate hikes.”

“The review would help the BOJ lay the groundwork for a tweak to its monetary framework.”

Market reaction

At the time of writing, USDJPY is holding gains above 141.00, adding 0.50% on the day.