Former central bank official and a possible candidate to replace the governor line Masaaki Shirakawa (Masaaki Shirakawa) in April to purchase bonds more actively in the Bank of Japan (8301), Nobuo Inaba said, if the Government is committed to reducing the world's largest public debt.
"The Bank is concerned is to continue to buy bonds on a large scale will lead to the deterioration of the country's financial situation, Inaba said:" In an interview with Bloomberg News, November 16. "The bank can strengthen its easing policy, if the Government is committed to achieving a healthy financial position, improve the impact of its policies.
The yen weakened to the lowest in nearly seven months, the market expected the Bank of Japan's political pressure, leading to further monetary stimulus measures. The opposition Liberal Democratic Party, in order to win a general election opinion polls leading to next month, is called "unlimited" lighten the end of deflation and the decline of the economic recovery since the last quarter, the fastest pace in the 2011 earthquake.
Inaba, Executive Director of the Bank of Japan, said a joint statement with the government to end deflation in the bank on Oct. 30, the first of its kind, is "meaningless" without a firm government commitment to reduce the country's debt, that is 237% The gross domestic product (GDP), according to the International Monetary Fund (IMF).
"Government should make a legal commitment to maintain the medium-term fiscal consolidation, said:" Inaba, 62 years old, currently serves as the Ricoh Sustainable Development and Business Research Institute, a think tank.
Shinzo Abe vows
Liberal Democratic Party leader Shinzo Abe (Shinzo Abe) last week called on the Bank of Japan pursues% to 3% inflation target, and said that he would change the law, the independence of the Bank of Japan. Japan's Kyodo news agency yesterday quoted Shinzo Abe as saying he may ask the Bank of Japan to buy treasury bonds for construction, to support expenses, and hopes the central bank governor who support the inflation target.
Shinzo Abe has made a different opinion, but the central bank can do depends on careful management itself to restore fiscal health, said: "Inaba, helped draft the Bank of Japan Law, the central bank officials in 1998. Although it is possible to improve, the Bank of Japan Law should not change the policy of a government or some members of Congress, "he said.
10:52 AM 81.27, the yen against the dollar in Tokyo, after earlier fell to the lowest level since January 25, 81.59,4, more relaxed as the market continues to price. Japan's Topix index rose 1.4 percent, in the morning of the conference title since March 2011, the biggest three-day gain, due to the yen's weakness improved the outlook for exporters.
Public support
Per cent of the respondents were of the opinion poll published by the Nikkei newspaper said today that they like the Liberal Democratic Party, while 16% chose Japan's ruling Democratic Party, before the election on December 16.
All 22 economists in a Bloomberg News survey of the Policy Committee of the Bank of Japan is not expected to take any new action adopted at the two-day meeting tomorrow. 16 economists forecast to ease in the next meeting in December.
The last meeting held on October 30, the Bank of Japan monetary stimulus, for the fourth time this year. An increase of 11 trillion yen ($ 13.5 billion) asset purchase, announced a new unlimited loan scheme, a joint statement issued by the Government.
The Bank of Japan has so far committed to purchase government debt of 39 trillion yen in 2014, to be issued this fiscal year to 44 trillion yen of new bonds. The Ministry of Finance, said Nov. 9 at the end of September, Japan's debt rose to 983.3 trillion yen.
SA said the chief economist of French bank Credit Agricole (ACA) Kazuhiko Ogata, Inaba is a potential candidate to become the Bank of Japan, Shirakawa five-year term ends April 8 head.
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