Ex-BOJ’s Shirai: Stimulus heads in the right direction

Former Bank of Japan (BOJ) board member Shirai crossed the wires last hour, via Bloomberg, raising skepticism over the potential impact of the stimulus.

Key Quotes:

Stimulus heads in the right direction

Not sure how much stimulus will help

Households have inflationary mindset

Households expect to spend less due to stagnant income

Negative rates have not reduced household inflation bias

BOJ should keep 2% target as long term goal

Should try to achieve 1% in shorter term