Much like the Three Stooges bit “Raw Oyster Stew”, using Central Banks to stimulate a structurally flawed economy is like Curly trying to eat the raw oyster.
(Reuters) – Bank of Japan Governor Haruhiko Kuroda told CNBC that there is room for reducing long-term and short-term interest rates.
“I think there (is) still some room for further monetary easing if needed,” he said, adding that it isn’t necessary at this stage.
Kuroda also said that the Japanese economy has “slightly slowed down”, partly because Japan’s exports to China have become “somewhat” weak.
Yes, Kuroda can try to push Japanese sovereign rates lower. The benchmark for low interest rates is … Switzerland. (Aka, The Swiss Miss!)
Swaps? Yen versus Franc swap rates:
So, Kuroda is suggesting a Swiss put on rates. Or a Swiss Miss!