by Dan Norcini
In reference to an earlier post I put up this morning about the concerns bond traders have about Central Banks reaching the limits of their ability to use monetary policy to stimulate their respective economies …..
Kuroda is speaking this evening ( Friday morning in Japan) about the need for GOVERNMENTS to implement structural reforms.
Here is a pertinent quotation:
it is “extremely important to raise growth potentials or natural interest rates through simultaneously implementing structural reforms”.
My take on this – Kuroda is signalling the Abe Administration to help the Bank of Japan beat back deflation. This is a tacit admission on the Governor’s part, that the BOJ has reached the end of its abilities in and of itself.