Ex-BOJ’s Iwata: BOJ should proceed with current slowdown in JGB buying

Former BOJ Deputy Governor Kazumasa Iwata crossed the wires last minutes, via Reuters, commenting on the BOJ’s asset purchases program.

Key Headlines:

BOJ should proceed with current slowdown in JGB buying so annual pace of buying eventually falls to 40 trln yen from 80 trln yen

BOJ should consider reducing ETF purchases at some point given distortions it is creating in markets

BOJ should modify its long-term interest rate target once it becomes clear inflation will stay around 1 pct

BOJ's inflation forecasts are too optimistic, even hitting 1 pct inflation could be challenging

BOJ should conduct new comprehensive assessment on effect of its stimulus policy