Bank of Japan monetary policy board member reiterates the Bank's desire to get inflation higher.
- BOJ should clarify its intention of cutting rates, buy KGBs aggressively
- By cutting rates the Bank of Japan can ease the burden on companies
- Bank must promise to act under specific conditions, and stress it will not tolerate deflation
- One idea is for the Bank of Japan to promise to ease further if prices deviate from its target, to tie its policy rate decisions more specifically to its price goal
- By easing further to contain price falls the BOJ can achieve its price goal quicker and minimise the side-effects of its easy policy
Kataoka is a persistent dissenter at meetings ... he wants even easier policy.
