BoJ’s Sato says QQE becoming harder to implement
Takehiro Sato says easing could undermine confidence in central bank action by eroding fiscal discipline
Takehiro Sato today (June 10) questioned the ability of the Bank of Japan (BoJ) to depress interest rates across the yield curve through its quantitative and qualitative easing (QQE) programme.
"It appears to me that the degree of difficulty in implementing QQE is rising, as the effect of lowering nominal interest rates has been diminishing gradually," said Sato, a BoJ policy board member, in a speech in Kofu.
Sato said he had understood the expansion of QQE at end-October 2014 – which he and
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