More from Wakatabe: Raising rates prematurely would push Japan back to recession

Author: Justin Low | Category: Central Banks

Further comments by BOJ deputy governor Wakatabe as he speaks in parliament


  • There are merits and demerits of monetary policy change over time
  • Must be mindful that damage to bank profits from prolonged low rates could accumulate
  • BOJ is continuing current policy so that price expectations will rise
  • Yield curve will steepen if BOJ patiently maintains current easing policy
  • BOJ is doing what it needs to do in order to reach 2% inflation target
  • Highly unlikely Japan will experience hyperinflation if BOJ sticks to inflation target
  • BOJ has tools to both ease or tighten policy
Nothing more from Wakatabe. Mainly a repeat of the BOJ's usual comments.