Mitsubishi UFJ Financial Group Inc. Chief Executive Officer Nobuyuki Hirano
Speaking in an interview in NY:
BOJ should consider modifying its inflation target
- Economy is improving
- aging population and declining birth rates contribute to a "lower potential inflation rate and lower potential growth rate"
- "The question here is whether we need to keep 2 percent target inflation rate as it is, given the fact that the Japanese economy continues to grow and employment environment is favorable."
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Keep in mind that Japanese banks, like MUFG have seen earnings pressured by persistently low interest rates and other monetary stimulus
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The volatility in Japanese bonds and in the yen on approach to the BOJ meeting has piqued interest in the meeting. Everyone it seems in unleashing an opinion on what the BOJ will or should do. Just some recent examples:
- Japan press: BOJ unlikely to make changes to monetary policy at least until October
- More on the BOJ considering policy moves at the next meeting
- BOJ may debate modifying yield curve target to allow for natural rise in long-term rates
- UBS is expecting fireworks from the BOJ meeting next week
- Here is what Gartman expects of the BOJ meeting
As of now I am sticking to my nothing burger expectation for the meeting
