Kuroda Inflation Focus Risking Money-Market Health
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Money market watchers say Bank of Japan Governor Haruhiko Kuroda risks crippling the foundation of the nation’s financial system to achieve his inflation target.
The outstanding balance of interbank lending in the so-called call market tumbled 17 percent this year to 14.1 trillion yen ($138 billion) on April 11, the least since January 2003 when the central bank was conducting its first round of easing through bond purchases. The BOJ currently buys about 7 trillion yen of government bonds a month from financial companies, offers them 0.1 percent loans and buys treasury discount bills without any limit to boost money supply and keep borrowing costs low.