Ex-BOJ’s Shirai: Chances high that BOJ chooses rate cut over more bond buys

Former BOJ board member Shirai was on the wires Tuesday, via Bloomberg, expressing her take on the central bank’s monetary policy, as we eagerly await BOJ’s decision on the policy program due tomorrow.

Key Quotes:

Chances high that BOJ chooses rate cut over more bond buys

Cutting rates has smaller costs than asset purchases

Expects asset purchases to get harder for BOJ to make

Better for BOJ not to make monetary base target a range

it’s not right for a central bank to make target value

BOJ should target 1% inflation first

Inevitable for BOJ to delay timing of hitting CPI goal