Kozo Yamamoto, a senior ruling LDP lawmaker and a key architect of Abenomics, complained that BoJ made a mistake in 2016 to change its policy to target interest rate under than yield curve control, instead of the pace of monetary base expansion. He said BoJ “ought to buy government bonds more aggressively”. But it’s difficult under the current YCC.
Also, Yamamoto said he opposes the plan sales tax hike in October and discussed with Prime Minister Shinzo Abe. But he cannot convince Abe to put off the twice-delayed sales tax hike. He said, “the prime minister told me while I may be theoretically right, it was politically difficult”.
