BOJ’s Harada: Bold monetary easing clearly has helped improve economy

Dhwani Mehta FXStreet

The Bank of Japan (BOJ) board member Yutaka Harada is on the wires now, via Reuters, making a scheduled speech titled ‘Economic Activity, Prices, and Monetary Policy in Japan’, with the key comments found below.

Key Quotes:

Raising interest rates now could revive deflationary expectations, further delaying the increase in prices and interest rates.

Frustration rising among banks as interest rates not rising.

Rate hike now would bring back deflationary expectations.

Banks can achieve profits if they downsize the number of banks and the amount of funds.

Low interest rates help improve employment and productivity.

Must wait for prices and interest rates to rise by continuing current easing policy.

Meanwhile, USD/JPY continues to consolidate the trade deal optimism led rally around 200-DMA of 108.88, with the upside lacking follow-through possibly due to negative Treasury yields and S&P 500 futures.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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