Kuroda speech: We don't think it's necessary to change the 2% inflation target
|Additional comments from Haruhiko Kuroda, Governor of the Bank of Japan, continue to cross the wires as he responds to questions following his speech at the International Monetary Fund's 2019 Michel Camdessus Central Banking Lecture. Below are some key quotes as reported by Reuters.
"With zero lower bound for short-term interest rates, it might be better to directly affect long-term rates through large-scale asset purchase program."
"Japanese experience with yield curve control could be utilized by other countries depending on circumstances."
"At this stage, we don't think it's necessary to change the 2% inflation target."
"If the financial system becomes unstable and malfunctioning, monetary policy will lose its effect on the real economy."
"In prolonged low interest rate situation, there is a risk that banks could be less profitable and reduce lending."
"Doesn't think this risk is currently presenting itself for Japan."
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