Koji Ishida, a former board member of the Bank of Japan, said Japan's economic growth would allow the central bank to abandon its massive stimulus program even before inflation hit its target of 2 percent. And that the Bank's recent move to make the stimulus more sustainable is long overdue.
Low inflation has forced the BOJ to maintain its ultra-easy policy in recent years despite concerns about the policy's side effects on markets and the banking system.
Ishida said in an interview for the first since leaving the BoJ in 2016 that the inflation target is a mechanism to achieve the central bank's mandate to stabilize prices for sound economic development and that the Bank of Japan will not continue its current policy until the inflation target is achieved at 2% And will probably make a flexible decision on monetary policy.
