Abe Aide Sees Potential for BOJ Buying Riskier Corporate Debt
- Nakahara says JGB buying should rise 20 trillion yen a year
- BOJ should ‘sound a signal gun’ with more stimulus, he says
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One of Prime Minister Shinzo Abe’s top economic advisers sees the potential for the Bank of Japan to emulate the European Central Bank in buying riskier corporate debt in the future.
For now, Nobuyuki Nakahara, an intellectual father of the BOJ’s first stab at quantitative easing in 2001, urged the BOJ to step up deployment of its main policy tool -- government bond buying. He said in an interview Friday the central bank ought to bring its target for those purchases up to 100 trillion yen ($942 billion) a year, from 80 trillion yen.