Abe’s aide sees potential for BOJ buying riskier corporate debt - BBG

Nobuyuki Nakahara, an intellectual father of the BOJ’s first quantitative easing in 2001 and one of Prime Minister Shinzo Abe’s top economic advisers, urged the BOJ to step up deployment of its main policy tool -- government bond buying, Bloomberg reports

Key Quotes:

“It’s better for the BOJ to act as soon as possible. The BOJ should sound a signal gun by adding more stimulus.”

“We have a clear path free from any fiscal drag” for more than three years because of the tax delay. And now “to make the most of this chance, we should start again with the first arrow” of Abenomics, or aggressive monetary policy.

“I think it’s better to make it abstract, something like as soon as possible, as long as the economic situation allows because you can’t predict the outlook of the economy,”

“It’s better not to promise two years or three years, something that can’t be fulfilled.”

“If you ask me if monetary policy is coming close to a limit, I would say yes. If you ask me if fiscal policy is coming close to a limit, I would say yes. So we don’t need to do anything more? Absolutely not.”