Kuroda speech: Will persistently continue with powerful monetary easing

Eren Sengezer FXStreet

Additional comments from Haruhiko Kuroda, Governor of the Bank of Japan, continue to cross the wires as he continues to speak at the International Monetary Fund's 2019 Michel Camdessus Central Banking Lecture. Below are some key quotes as reported by Reuters.

"We will carefully examine various risk factors, and weigh the benefits and costs of policies."

"BoJ will persistently continue with powerful monetary easing to maintain momentum toward achieving 2 percent inflation."

"Even in the face of a substantial decline in the natural rate of interest, it is possible to realize accommodative financial conditions, stimulate economic activity and prices by strengthening monetary easing."

"We need to bear in mind it may take time to overcome entrenched low inflation, even with powerful monetary easing."

"It is not easy to continue powerful measures for a long time."

"Excessively low interest rates could make financial institutions reluctant to lend, such as through capital constraints, and thereby diminish the monetary easing effects."

"If financial institutions take excessive risks under severe environment to acquire immediate profits, the vulnerability of the financial system could increase in the longer term."

"Financial institutions have sufficient capital bases but we will continue to pay attention to whether there are any changes in financial institutions' behaviour, the functioning of financial intermediation."

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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