Ex-BOJ official: BOJ should correct ‘big lies’ at July meeting

A former Bank of Japan (BOJ) executive director Hideo Hayakawa said in an interview late-Tuesday that the central bank should roll out further stimulus measures at its policy meeting next week and use that opportunity to correct "two big lies" about monetary policy.

Hideo Hayakawa, referring to the statements about unlimited policy space and achieving its inflation target in a time frame that has been repeatedly delayed, noted, “It’s a major problem that the BOJ has continued with two big lies.” 

He added, “There is no way that markets will trust the BOJ if it remains bullish. Everybody knows that 2 percent inflation won’t happen in a near future and that there is a limit for easing tools so I don’t think acknowledging these facts will cause a big impact.”