Abe's election campaign puts BOJ policy in the back seat

  • World Premium
  • Wednesday, 06 Jul 2016

Pedestrians holding umbrellas walk in front of the Bank of Japan headquarters in Tokyo, Japan January 29, 2016. REUTERS/Yuya Shino/File Photo

TOKYO (Reuters) - The Bank of Japan was once at the centre of Prime Minister Shinzo Abe's audacious reflationary drive, but with little to show for three years of massive stimulus it finds itself sidelined ahead of upper house election this weekend.

Even as a strong yen keeps the central bank under pressure to ease monetary policy, the confusion sown by its unexpected shift to negative rates in January has seen it shunned by the government, which wants to shift the focus to fiscal stimulus.

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