BOJ's negative interest rate policy “Adverse effects” to be verified at next month's meeting September 24 21:34
The BOJ Governor Kuroda held a press conference in Osaka City on the 24th, and at the next month's monetary policy decision meeting, he showed the idea of verifying whether the Bank of Japan's negative interest rate policy had any negative effects on financial institution management and pension management. It was.
Regarding the negative interest rate policy that the BOJ has continued, if the interest rate is further lowered as an additional mitigation measure, there will be more “side effects” that will have a negative impact on financial institutions' profits and pension management than the effect of supporting the economy. Concerns have been raised that it will grow.
During a press conference, the reporters asked whether next month's monetary policy decision meeting would consider side effects, while Kuroda said, “That's right. If there is an impact on the market function of JGBs and government bonds, it is necessary to fully consider them, ”he said.
In addition, while the US and Europe are taking steps toward monetary easing, the Bank of Japan also shows a stance to take additional mitigation measures if the risk of damaging inflation is rising.
While reporters asked how much the risk has increased at the moment, Governor Kuroda has shown the long-term target of 2% inflation, It is necessary to carefully look at whether downside risks will affect solid domestic demand, ”he said, and recognized that attention should be paid to overseas economic trends such as US-China trade friction.