Fri, Mar 01, 2013 - Page 15 News List

Abe taps Kuroda for central bank as output rises

Reuters, TOKYO

A former finance ministry bureaucrat who oversaw yen-selling intervention from 1999 to 2003, Kuroda has said the central bank should not buy foreign currency bonds as that constituted currency policy.

Yesterday, Aso was also cautious on such a policy, saying it could be seen as currency intervention and in breach of agreements with other governments.

Kuroda does support increased purchases of government bonds and other domestic assets, such as corporate bonds or exchange traded funds, to pump cash into the economy. He has suggested two years as an appropriate amount of time for the central bank to meet its 2 percent inflation target.

In contrast, Iwata prefers buying more longer-dated government bonds over purchases of corporate bonds or exchange traded funds.

Nakaso may not feature prominently in policy setting.

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