The Bank of Japan has done everything it can to normalize policy under Gov. Haruhiko Kuroda¡¯s watch and is now set to ride out the rest of his term without any major changes, according to a former senior central bank official.
¡°The BOJ has reached the end of the line on normalization for now,¡± said Hideo Hayakawa, referring to a series of tweaks to the central bank¡¯s stimulus framework in March that enabled it to cut back its asset buying.
¡°Unless the current leadership suddenly says it¡¯s gotten policy wrong all this time, it¡¯s pretty much done all it can,¡± the former executive director said in an interview, adding that the pandemic has underlined the importance of fiscal policy in helping the economy rather than a monetary approach.
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