LIT within the Bank of Japan was laid bare yesterday, with newcomers to its board pressing to strengthen commitment to an ultra-loose policy.
Pressure on the central bank for bolder action has intensified in the run up to next month’s election with leading opposition candidate Shinzo Abe calling for the central bank to adopt negative interest rates and other radical measures.
Existing Bank governor Masaaki Shirakawa repeated his view that monetary easing alone can not beat deflation, citing fiscal alternatives.
But minutes of the 30 October meeting of the Bank’s nine-member board released yesterday showed Takehiro Sato, one the newcomers, had suggested a more activist stance on monetary expansion once Shirakawa’s term ends in April.
Japan’s general election is scheduled for 16 December.