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After the 'bazooka', Bank of Japan dismantles the work of its radical chief

After years of shock-and-awe stimulus, the Bank of Japan is quietly rolling back radical policies introduced by its bold chief Haruhiko Kuroda and pioneering controversial new measures that blur the lines between central banking and politics.

The unwinding of Japan's complex policy is driven by Deputy Governor Masayoshi Amamiya, insiders say, a career central banker considered the top contender to replace Governor Kuroda whose term ends in 2023.

"The current stimulus can't stay forever and must be rolled back at some point," said a former BOJ policymaker who was involved in the March decision. "That's always in the mind of career central bankers."

Officially, the change in March was aimed at extending the lifespan of stimulus policies championed by Kuroda, the man once seen as a bold visionary who could shock the economy out of deflation with his "bazooka" asset-buying programme.

However, insiders say there was another motive: to pave the way for an eventual retreat from these very policies.

Reference: Reuters