BOJ should adopt inflation target range - Formber board member Shirai

The Bank of Japan (BOJ) should adopt an inflation target range as opposed to the current pinpoint target of 2 percent, former BOJ board member Sayuri Shirai said while talking to Bloomberg earlier today.

Key quotes

BOJ should not abandon inflation targeting as that could lead to a sharp rise in JPY. 

Growing view BOJ may need modern monetary accommodation. 

BOJ may ease more if JPY surges, resulting in a sharp slowdown in the economy. 

Lowering 10-year yield could have a negative impact on the financial system. Instead, the BOJ can expand the 10-year yield's target range. 

BOJ has little options left other than expanding the target range of the 10-year government bond yield.