Ex-BOJ’s Kiuchi: ‘Communicating only bullish confidence about the positives is a big problem’

Former BOJ board member Takahide Kiuchi noted in a Bloomberg interview conducted on Friday:

"Communicating only bullish confidence about the positives is a big problem," Kiuchi said in an interview with Bloomberg on Friday. 

Kiuchi says the biggest risk factor is potential disruption of Japan's government bond market. The government may run out of JBGs to purchase.

The BOJ may be nearing the limits of its easing program and bond scarcity may force it to normalise policy well before reading its 2% inflation target.