BOJ's Kuroda: Prolonged low rates could weigh on consumption

Omkar Godbole FXStreet Contributor

The Bank of Japan (BOJ) Governor Kuroda on Tuesday shared his take on the undesirable effects of a prolonged low period of low-interest rates.

Kuroda said holding interest rates low for a long time could push down household income and hence could weigh on consumption. However, the central banker still favors persistent easing as the inflation remains well below the 2 percent target.

Key quotes

BOJ's easy policy has helped consumption by stimulating the economy, pushing up wages

Will take into account side-effects, such as the impact on financial institutions, in guiding monetary policy

Must be mindful of uncertainties on economic, price outlook

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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