The Bank of Japan’s (BOJ) monetary policy board member Takako Masai is out on the wires discussing the negative impact of holding interest rates at low levels for a prolonged period of time.
Key quotes
The Bank of Japan must assess the costs and benefits of its policy from varying perspectives.
Monetary easing stimulates the economy, but prolonged low rates could have adverse effects on the bond market functioning and the profits of financial institutions.
Uncertainty on overseas economies is heightening.
BOJ must maintain an extremely easy monetary policy to ensure the positive momentum in prices is not disrupted.
Price moves remain weak, but momentum to hit the target on inflation is not lost.
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